The income tax (I-T) department raided the premises of the South Indian Education Society (SIES) and the residences of some of its office-bearers in an operation that continued till late evening on Tuesday. This is probably the first time an educational institution in the city has been raided by I-T officials.
The 78-year-old behemoth has over 15,000 students studying in classes ranging from junior KG to management. I-T officials swooped down on the residence of SIES secretary V Shankar at Kalpataru Estate in Sion early on Tuesday morning and followed it up with raids on the residence of Shankar’s secretary Venkatnathan, alias Rajamani, who lives in Matunga, and other people’s residences.
Sources said Rs 52 lakh in cash was seized from the residence of Venkatnathan and Rs 2.5 lakh was seized from a locker in the Indian Bank’s branch located at Shanmukhanda Hall building. “Several lockers belonging to persons connected with the SIES group of institutions have been seized and several documents, CDs and so on have been seized. Our operation will continue on Wednesday,” an official stated.
Among other things, the tax sleuths are probing a Rs 7-crore donation allegedly given by Deccan Holdings, which owns IPL team Deccan Chargers, to SIES. A source said a Mercedes car was also donated to the institution and this was under the scanner. Shankar is a major stakeholder in the Deccan Chargers and also a secretary of SIES.
It is learnt that I-T officials had earlier, while assessing the returns of SIES, come across temporary and permanent receipts issued to several students from whom donations were allegedly taken in cash at the time of admission. Sources in Mantralaya said the I-T department had written to the education ministry recommending action against the institution under the anti-capitation law.
The institution is facing a crisis with Shankar and members of the 15-member managing council putting in their papers. Differences have risen between Shankar and the council on the manner of running the organisation. The affairs of the institution are currently being looked after by an interim committee, led by retired judge B N Srikrishna, till an extraordinary general body meeting is held to elect a new managing council.
The raid on SIES realy a good effort taken by the IT because actually, the people incorporate the Society for the self interest not for the publice interest as required in the Socities Registration Act,1860, So it becomes the duty of the IT person to check the accounts of such societies minutely.
I think if the SIES will be held guilty, the similar activities of other institutions will also be looked into.
The fall out of the IPL kill is going to be very interesting indeed. We await more stories like this, as mere interested onlookers!