Income Tax raids continue for second day at popular hotels in Chennai

Income Tax raids continue for second day at popular hotels in Chennai

Income Tax raids continue for second day at popular hotels in Chennai

Officials of Income-Tax department on Friday continued raids for the second day at popular restaurants in Chennai.

A source was quoted as saying: “The raids are being conducted after we found they were not disclosing income. This morning two teams have gone to Thanjavur and Kanchipuram and the rest of the teams are continuing the raids in the city.”

Some of Tamil Nadu’s best-known eateries, including the world-famous Saravana Bhavan chain, were raided by the Income Tax Department on Thursday as dozens of sleuths took part in searches in the state.

A total of 32 places were raided, and under the scanner were companies like Saravana Bhavan, Hot Breads, Grand Sweets and Snacks and Anjappar.

Income Tax department officials said the searches are being done following complaints of alleged tax evasion. “We believe these groups suppress large-scale income from their domestic operations. They have not disclosed income generated in their overseas branches over the last several years. We would be able to assess the quantum of tax evasion only after the raids,” a senior officer said.

Saravana Bhavan, the most well-known among the five restaurant groups, has its outlets in 20 countries including the US, the UK, France and Australia. It was founded by P Rajagopal. It has 66 branches abroad including the US, UK and Australia besides 25 restaurants in India including in Delhi.

While the raids in Tamil Nadu have stunned everyone, the searches in Karnataka have sent panic waves across the Kannada film industry. For, the actors whose residences and business establishments were raided were Shiva Rajkumar, Puneet Rajkumar Sudeep and Yash.

Also on the I-T radar were producer of the blockbuster ‘KGF’, Vijay Kiragandhur, producer of ‘Villain’ CR Manohar and ‘Rockline’ Venkatesh.