Synopsis
Continuing into its second day, the Income Tax Department is conducting extensive searches at the premises of the Sri Chaitanya educational institutions in Telangana and Andhra Pradesh, focusing on allegations of financial misconduct.Key Takeaways
- Income Tax authorities are probing the Sri Chaitanya group.
- Searches are happening across multiple cities.
- Allegations involve dual software for financial transactions.
- Over Rs 5 crore in cash seized.
- Investigation includes review of admissions and financial records.
Hyderabad, March 11 (NationPress) Income Tax (I-T) officials have persisted with their searches at the Sri Chaitanya educational institution locations across Telangana and Andhra Pradesh for a second consecutive day on Tuesday.
The I-T investigators were inspecting the corporate office located in Madhapur and various other offices in Hyderabad, as well as sites in places such as Vijayawada, Mumbai, New Delhi, Chennai, and Bengaluru.
Officials were scrutinizing the fee payment software utilized by the educational institutions due to allegations of the group employing dual software systems to conceal specific transactions from the Income Tax Department. Additionally, there are claims that the institution was accepting cash payments from parents to avoid taxation.
During the raids on Monday, it is reported that the officials seized approximately Rs 5 crore in cash.
The investigators also reviewed the income tax filings submitted by the management for the last three years, suspecting that they collected fees from parents but failed to disclose these as income, potentially redirecting funds to other business ventures.
Moreover, a thorough examination of records pertaining to admissions in various courses and colleges was underway to uncover any suspected cash transactions.
Officials from the Sri Chaitanya group were interrogated regarding their bank accounts, including deposits, withdrawals, and overall expenditures.
They reportedly gathered details about fee payments made by students' parents through NEFT, RTGS, and cash transactions.
The I-T Department may issue notices to the Sri Chaitanya management for further questioning in the aftermath of these raids.
Sri Chaitanya is a prominent network of educational institutions within the Telugu-speaking states, operating 322 schools and an equivalent number of junior colleges in Telangana and Andhra Pradesh. Additionally, it manages 107 educational establishments across other states.
Established in 1986 by BS Rao, a former physician, alongside his spouse, Jhansi Lakshmi Bai, it comprises a vast array of schools, junior colleges, hostels, and coaching facilities for IT-JEE, NEET, EAMCET, and UPSC-CS exam preparations.
