Chennai: Income tax raid at Tamil Nadu chief secy P Rama Mohana Rao's residence

The Income Tax (I-T) Department officials on Wednesday raided the home of Tamil Nadu chief secretary P Rama Mohana Rao. "The raids have commenced at Tamil Nadu chief secretary's residence," a senior IT official told IANS.

The raids at Rao's Annanagar residence in Chennai started at 5.30 am. However, sources told News18 that no seizure has been made till now. Report also said that the raid was conducted based on information received from some road contractors who were detained for questioning based on previous raids. In a major shuffle after the re-election of AIADMK government in Tamil Nadu, Rao was appointed chief secretary in June this year.

The IT department recently seized a total of 177 kg of gold and cash amounting to Rs 96 crore in withdrawn Rs 500 and Rs 1,000 rupee notes and Rs 34 crore in the new denomination from three businessmen — J Shekhar Reddy, Srinivasalu and Prem.

The big fish is said to be Reddy, a contractor and who has done work for the Tamil Nadu government.

"A total of 13 premises are being searched," a senior official said, adding the premises connected to Rao's son and other relatives are part of the operation. It is understood that the official residence of the Chief Secretary in the state capital here has also been brought under the said operation.

Rao was appointed the top state bureaucrat in June this year by the state government.

The searches, they said, are related to the department's probe in the biggest haul of cash and gold here post demonetisation, in which over Rs 142 crore unaccounted assets have been recovered so far. The total seizure in the case is over Rs 170 crore in a single case related to action against sand mining operators in the state and few others including S Reddy, who was also on the panel of a religious shrine body. The Enforcement Directorate has also registered a money laundering complaint in this case after the tax department shared official documents with the agency.

With inputs from PTI

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Updated Date: Dec 21, 2016 12:20:25 IST