IT raids at Chennai engineering college reportedly unearth Rs 8 crore in unaccounted cash

The IT officials are reported to have found the money distributed over 400 bank accounts.

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Income Tax officials in Chennai on Saturday reportedly conducted searches at an engineering college in the city, and found Rs 8 crore in the accounts of hundreds of employees.

The Times of India reported that the raids followed reports that the owner of the college had deposited his unaccounted cash into the accounts of employees.

The IT officials are reported to have found the money distributed over 400 bank accounts.

"A few days ago we got information from some employees of the college saying their bank accounts were used by the college owners to deposit cash. Based on this we conducted the searches...The college accounts could not be balanced with the cash deposits. Therefore it is black money which has been deposited in the employees' accounts. The employees were told that they would be given some commission and after sometime the money would be taken back" a senior I-T official told TOI.

Colleges in Tamil Nadu are known to have huge amounts of black money that they receive by students allegedly 'paying' for their seat.

In September, SRM Group Chairman and SRM University Chancellor TR Pachamuthu was arrested by the Crime Branch of the Chennai police after more than 100 students said that they had paid money for obtaining a medical seat in SRM college, but were not admitted.

In June, a massive raid was carried out by Income Tax officials on major colleges in Puducherry and Chennai.

At the time, it was reported that after NEET came into force, many parents who had paid colleges for medical seats through an agent, wanted their money back.