IT dept raids Edappadi's relative, unearths undisclosed revenue of over Rs 700 crore

CHENNAI: After searching 25 premises linked to a construction firm owned by AIADMK general secretary and opposition leader Edappadi K Palaniswami’s relative for five days, sleuths from the Income Tax said they have seized unaccounted cash of Rs 8.5 crore and also unearthed undisclosed revenue of more than Rs 700 crore in five years.

The searches that were on at NR Construction Company in Erode and 25 locations linked to the firm in Chennai, Erode, and Bengaluru concluded late on Saturday. The firm is owned by N Ramalingam, who is related by marriage to Palaniswami.

Explaining the relationship, sources said Palaniswami’s son Mithun and Ramalingam’s son R Chandrakanth are married to sisters.

IT sources said during the raids they found that false accounts were created to claim purchase of construction materials like cement and rods. According to the evidence seized, it has been revealed that the firm has evaded tax for revenue of more than Rs 700 crore over the last five years.

Sources added that during the five-day operation which came to an end on Saturday evening, unaccounted cash amounting to Rs. 8.5 crore and several financial and property records were recovered and seized.

NR Constructions is involved in executing construction projects across Tamil Nadu, Karnataka and several other states in north India.

It may be noted that in its previous DVAC complaint, the DMK alleged that four-laning of Oddanchatram-Dharapuram-Avinashipalayam on State Highway 37, which was estimated to be Rs 713.34 crore and later revised to Rs 1,515 crore, was awarded to the construction firm at an inflated cost.

Meanwhile, political observers alleged that the raid was an attempt to make the AIADMK, especially Palaniswami who does not seem to be in a mood to patch up the relationship with the BJP, for an alliance ahead of the 2026 Assembly polls.