The Income Tax Department has seized "unaccounted" cash of over Rs 16 crore and detected black income of about Rs 80 crore after it raided multiple entities in poll-bound Tamil Nadu, the Central Board of Direct Taxes (CBDT) said on Friday.
It said the action was part of an election surveillance being carried out by the department for the ensuing assembly elections in Tamil Nadu and Puducherry.
The searches were carried out on March 16 and 17 in Chennai, Tiruppur and Dharapuram.
"Five premises belong to five entities, who, in addition to their regular business, are also acting as cash handlers. The action resulted in a cash seizure of Rs 5.32 crore," the Board said in a statement.
The CBDT frames policy for the tax department.
In an another case, searches were carried out against a business group engaged in yarn trading and supply of PPE kits, bags and baby care kits to various state governments.
It was found, the statement alleged, that the group is engaged in the practice of "suppressing" profit by inflating purchases and other expenses.
"The unaccounted income so generated is utilised for making investments in land and expansion of business" the statement said.
"The search has resulted in seizure of unaccounted cash of Rs 11.50 crore and total unaccounted income detected so far is Rs 80 crore," it said.
Polls to the 234-seat Tamil Nadu assembly will be held in a single phase on April 6.
"Seizure of large unaccounted cash will reduce the possibility of its utilisation for electoral purposes and will aid the objective of free and fair poll in the state of Tamil Nadu," the statement said.
"Income Tax department has stepped up its monitoring and is closely watching the cash movement during the ensuing assembly elections," it added.