IT raids in Vellore educational institute

Chennai, June 8 (UNI) The search and survey conducted by the Income Tax personnel at a prominent educational institute in Vellore and 15 other premises have revealed that people associated with the management of the institute had invested substantial amounts earned from unaccounted sources in acquiring immovable properties and admitted undisclosed income exceeding Rs 8.5 crore.

An official release here said the search had also resulted in seizure of cash, jewellery and other assets aggregating to more than Rs one crore.

''Further investigations are in progress to determine the quantum of capitation fee collected by the institution, which runs into crores, and the quantum of undisclosed income of the group,'' the release said.

Over 150 personnel of the IT department from here have conducted the search and survey operations in Vellore and Chennai. The operations, which commenced around 1130 hrs on June 6, continued till late last night, it said.

Besides the educational institution, the residences of various people associated with the management were also searched, it added.

In the course of the search, evidence have been gathered to indicate that the educational institution insisted upon and collected a substantial amount of capitation fee towards admission to various courses offered by it.

Though the fee was stated to be received as corpus donation, given voluntarily, it was found that the amounts received were not voluntary contributions, but had a direct nexus with the admission of students, irrespective of merit, the release said.

Evidence relating to suppression of income from transport operations and contract works by this group have also been gathered, it said.

In another case, consequent to an inter-agency information, seizure of unaccounted cash of Rs 73.92 lakhs was effected yesteday from a group of six individuals, moving under suspicious circumstances at the Fort Railway station here. They were carrying the cash in cloth pouches wrapped around their waists, the release said.

UNI