The Income Tax Department has carried out a search operation in Maharashtra, Karnataka and Tamil Nadu at the premises of a chain of educational institutes and has detected instances of diversion of funds, said an official statement.
The search held on 14 March covered more than 25 premises. It led to detection of evidence including digital data, which show that substantial funds have been allegedly siphoned-off from the trusts for the personal benefit of the group’s promoters and their family members, the statement said.
The department said that this is in violation of the provisions relating to claim of exemption by the Trusts under the Income-tax Act, 1961.
Alleged diversion of funds from the trusts includes debiting of bogus expenses in the guise of purchase of goods and services from various shell companies and limited liability partnerships owned by the promoters, their family members, and some of their trusted employees.
It was detected that actual goods or services were not provided by these entities and the same have been corroborated by the employees in their deposition, the department said. The money so siphoned-off has been utilised for investment in acquiring benami properties and making unfair payments.
During the search, evidence of about two dozen immovable properties located in Maharashtra, Pondicherry and Tamil Nadu have also been gathered which are either benami properties or not disclosed in the respective returns of income, the department said. These properties have been placed under provisional attachment, the tax department said.
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