Income Tax officials on Saturday concluded their five-day search of Sri Chaitanya group of educational institutions in Hyderabad, Vijayawada, Chennai, Bengaluru and Mumbai. The searches, which ended on Saturday, were conducted on suspicion of tax evasion and diversion of funds into other business activities.
I-T officials, off the record, said that they suspect tax evasion amounting to over Rs 230 crore. However, this has not been officially confirmed. Investigators also uncovered digital evidence, account books, data from both software systems and records of cash fee collections, sources said.
Searches were conducted on the group’s corporate office in Madhapur and branches in other states. Officials reportedly discovered that cash collected from students was diverted into other business ventures, including realty.
According to agency sources, the group’s management used separate software systems—one for fee collection and another for tax filings — indicating significant tax evasion.
It was revealed that the majority of the tuition and admission fees were collected in cash, while only a small portion was recorded through online payments or cheques for income tax purposes.
During the operation, I–T teams searched the residences of the institution’s directors and key employees, seizing Rs 5 crore in cash. Officials also accessed several bank lockers linked to the directors and their family members.
Following the latest operation, the tax department has summoned the institution’s management and directors to appear before the investigation officer next week with all relevant documents related to the tax evasion case and other financial irregularities.
Sources revealed that in 2020, I–T officials had previously conducted raids on Sri Chaitanya for similar violations, seizing Rs 11 crore at the time.
