Tax raids: TN official,firm nexus suspected in PDS procurement

One of the two firm supplies essential commodities to the Tamil Nadu Civil Supplies Corporation for distribution through Public Distribution System and eggs under the Integrated Child Development Scheme.

By :  migrator
Update: 2018-07-06 18:08 GMT

Chennai

Income Tax authorities today said they were conducting searches in 70 plus premises across Tamil Nadu, including in the city and Namakkal, for alleged tax evasion by two companies and a senior IAS official, suspected of colluding with one of them.

The searches that began yesterday have been completed in some of the premises and was continuing in others, tax investigation department sources told PTI.

The tax raids on the two firms and their associates are for alleged tax evasion by floating more than 100 shell companies and through benami transactions.

The firms have suspected financial and real estate dealings between them and alleged unaccounted money was used for acquisition of properties, the sources said.

One of the two firm supplies essential commodities to the Tamil Nadu Civil Supplies Corporation for distribution through Public Distribution System and eggs under the Integrated Child Development Scheme.

Read More: Top official grilled over supply of noon meal

The top IAS official is under the scanner for alleged manipulation of tender norms to favour one of the two companies, which is also under the scrutiny of the Karnataka Lokayukta for alleged irregularities in that state.

The search in the premises of the official was over and aspects like questioning are continuing, sources added.

The shell companies floated date back to three to four years and recently such entitites have gone up exponentially, they said.

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