DVAC raids over 40 locations across TN in transformer procurement scam case

Chennai, Aug 19 (IANS) The Directorate of Vigilance and Anti-Corruption (DVAC) on Wednesday launched coordinated searches at more than 40 locations across Tamil Nadu in connection with alleged irregularities in the procurement of transformers, a day after Income Tax officials raided premises linked to a Chennai-based computer technology and communications company.

The statewide DVAC operation covered residential and commercial premises as well as factories believed to be connected to the transformer procurement case.

In Chennai and its neighbouring districts alone, searches were conducted at 27 locations, including four premises in Perungudi and three in Anna Nagar. Properties in Tiruvallur and Chengalpattu districts were also covered.

Officials were additionally searching more than 10 factories during the early morning coordinated action.

The raids were aimed at collecting documents and other material relating to the alleged procurement irregularities.

Further details about the persons and companies under investigation, and the suspected financial loss involved, were awaited.

The searches came a day after the Income Tax Department carried out a separate operation against a computer technology and communications company functioning on TTK Road in Alwarpet, Chennai.

The company, which deals in computer spare parts, was searched following allegations of irregular financial transactions involving foreign firms and small Indian companies.

Income Tax teams conducted simultaneous searches at five premises associated with the business, including locations in Ernavoor, Alwarpet, Virugambakkam and Rajamangalam. Armed police personnel provided security to the officials during the operation.

The teams examined documents, computer records, accounts and other financial material at the premises.

Sources said the Income Tax action was initiated following complaints of tax evasion, suppression of income and unaccounted financial transactions. Investigators were examining whether the company had failed to disclose income or properly record payments made through its business dealings.

Officials said the value of any cash, documents or other material seized during the searches would be disclosed only after the operation and the preliminary scrutiny of the records were completed.

There was no official indication that the Income Tax searches and the DVAC raids were connected.

Both agencies were conducting separate investigations into the respective allegations, and detailed statements on the outcome of the operations were expected after scrutiny of the materials collected.

–IANS

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