TN I-T raids yield Rs 200 cr cash, 100 kg gold

Massive raids by sleuths of Income-Tax Department in Chennai, Madurai and Aruppukottai (Virudhunagar district) in residences and offices of a leading road contractor in Tamil Nadu have put the Edappadi Palaniswamy Government on the defensive.

The raids which commenced on Monday morning at 40 locations belonging to SPK Group of Companies owned by Nagarajan Seyyadurai and his family are continuing even late Tuesday. It is reported that the Group has close contacts with Chief Minister Edappadi Palaniswamy.

Though the Income-Tax Department is tight lipped about the seizures made till now, sources in the Income-Tax Office in Chennai disclosed that cash worth Rs 200 crore and gold weighing 100 kg have been taken into custody by the raiding teams. The cash and gold were kept packed in travel bags and in the high-end cars parked on the premises of the SPK Group offices and residences.

Seyyadurai is close to the AIADMK leadership and had bagged major contracts of the State through his political influence, alleged the DMK. The SPK Group is into big-time construction business, hotels and spinning mills across Tamil Nadu.

Leader of the Opposition M K Stalin, who is away in London, on a personal visit, issued a statement asking the Centre to intensify the raids and punish the corrupt. He alleged that some of those associated with the SPK Group were benamis of Palaniswamy who is holding the Highways Department portfolio among others.

Stalin also alleged that SPK Managing Director Nagarajan Seyyadurai and director Subramanian Palanisamy were getting all the highway contracts awarded by the AIADMK Government.

Stalin also said that Subramanian Palanisamy’s daughter is married to Edappadi Palaniswamy’s son .

It may be noted that the raids come at a time when a major controversy on the Chennai-Salem  eight-lane Expressway has broken out over the land acquisition procedure and awarding of contracts. The project is estimated to cost Rs 10,000 crore and a wordy duel has erupted over the awarding of contracts. “The SPK Group has managed to bag a number of major road construction projects in the State as well as toll collection business along the national highways,” alleged Stalin in his statement.

The raids on the SPK Group comes within weeks of the DMK submitting a petition to the Directorate of Vigilance and  Anti-Corruption (DVAC) alleging the Chief Minister of indulging in favouritism and requested registration of a criminal case under the Prevention of Corruption Act. Last week saw the Income Tax department officials raiding the residences and offices of Christy Friedgrams Pvt Ltd, suppliers of food grains and eggs to the noon-meal scheme of the Tamil Nadu Government under the Integrated Child Development Scheme.

Tuesday also saw the Madras High Court issuing notice to the Tamil Nadu Government asking why a CBI probe should not be held against Deputy Chief Minister O Panneerselvam in a case filed against him by the DMK accusing him of purchasing properties disproportionate to his known and declared sources of income.