DVAC Conducts Raids at Over 40 Locations in Tamil Nadu Over Transformer Purchase Scam

Chennai, August 19: The Directorate of Vigilance and Anti-Corruption (DVAC) launched a significant operation on Wednesday, raiding more than 40 locations across Tamil Nadu in connection with alleged irregularities in transformer purchases. This action followed a day after the Income Tax Department conducted raids linked to a computer technology and communication company in Chennai.

The DVAC’s operation included both residential and commercial properties, as well as factories suspected of involvement in the transformer procurement scandal. Raids were conducted at 27 locations in and around Chennai, including four sites in Perungudi and three in Anna Nagar. Operations also extended to the Tiruvallur and Chengalpattu districts.

Previously, the Income Tax Department targeted a computer technology and communication firm operating on TTK Road in Alwarpet, Chennai. This raid was prompted by allegations of irregular financial transactions involving foreign firms and smaller Indian companies.

Income Tax teams simultaneously searched five locations associated with this business, including Ernavoor, Alwarpet, Virugambakkam, and Rajamangalam. Armed police provided security to the officials during the operation. The teams examined documents, computer records, accounts, and other financial records at these sites.

Sources indicated that the Income Tax Department’s actions were initiated following complaints of tax evasion, income concealment, and unaccounted financial transactions. Investigators aimed to determine whether the company failed to disclose its income or maintain accurate records of payments made during its operations.

Officials stated that the value of cash, documents, or other items seized during the raids would be disclosed only after the operation and initial record checks were completed.