The Income Tax Department launched searches on the premises of SPK Group, one of the major road contractors in Tamil Nadu, that has establishments in Chennai, Madurai and Aruppukottai, sources in the investigating agency said on Monday.
After perusing documents seized in the searches and specific information, a team of investigators rushed to a major construction firm that had its offices in Tiruchi, Chennai and other places.
“About Rs. 160 crore cash, which is suspected to be unaccounted for, and bullion and gold jewellery weighing about 100 kg has been recovered so far. The raids are still on and these figures may further go up,” a senior official said.
Another senior Income Tax official, who led the investigating team, said that the operations were still on and would continue on Tuesday.
“We searched all the business houses of the group, including SPK Spinnerrs Private Ltd (the company is into textiles, spinning and weaving), SPK Hotels, Sri Balaji Tollways Private Ltd and SPK and Co Exprressway Private Ltd,” he said.
The firm is a leading civil work contractor, with suspected links to “politically influential quarters” and had executed projects for state government departments, including the highways and Public Works, sources said.
The Chennai investigation wing of the department is conducting the operation. The raids were conducted after the department found “evidence of suspected tax evasion by the firm and its associates”, who also have political links, he said.