The income tax department on Monday raided the residence as well as offices of SPK Group, one of the main road contractors in Tamil Nadu, at 30 locations. Reports said that more than Rs 150 crore was seized during the raids.
While the raids that are spread across 30 locations was triggered by a tip-off on alleged tax evasion, reports said that IT officials were seeking details on cash and documents seized from the company.
It is to be noted that the department of Highways and Minor Ports is a portfolio directly overseen by Chief Minister Edappadi Palaniswami. Palaniswami served as the Minister for Public Works, Highways and Minor Ports until his elevation to the post of Chief Minister in February 2017. He continues to retain the portfolio.
The firms linked to SPK Group have also come under the I-T scanner. The raids have been conducted following information to the IT department that SPK Group has been favoured in the tendering process in the highways department. There were also information about alleged tax evasion.
Tax raids, held with state police security, were launched following “continuous monitoring of suspicious activities both before and after the period covering demonetisation,” sources added.
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, reports said.