Chennai: In a major operation against alleged tax evasion, the Income Tax Department has seized unaccounted cash amounting to Rs 20 crore and approximately 10 kg of undeclared gold valued at around Rs 11 crore during ongoing raids at premises linked to Pothys, a prominent South Indian textile retail chain. The searches, which commenced on Friday across more than 20 locations in Chennai, Madurai, and Coimbatore, are part of a widespread investigation into the financial dealings of the group and its promoters.
The raids targeted multiple properties, including the residences of the company’s chairman, Ramesh Moopanar, and his sons, as well as business offices and showrooms. The operation involves over 200 officials, with security provided by the Central Reserve Police Force (CRPF), and is expected to continue until Tuesday. The department is scrutinizing financial documents, bank records, property acquisition details, and evidence of possible foreign investments.
Four-Day Search Reveals Extensive Unaccounted Assets
Founded in 1927 in Srivilliputhur by K.V.P. Sadaiyandi Bodhi Moopanar, Pothys has grown from a small-scale operation into a multi-generational family enterprise with a significant presence across South India and Delhi. The current raids are focused on alleged discrepancies in financial records and tax compliance. Officials are examining documents related to income, assets, investments, and interstate fund flows, given the group’s expansion into multiple states.
So far, the search has led to the seizure of Rs 18.2 crore in unaccounted cash and 10 kg of gold worth an estimated ₹12 crore. Preliminary findings suggest widespread tax evasion running into several crores of rupees. The department is also reviewing land and property purchase documents and overseas transaction records as part of its efforts to trace the movement of unaccounted money.
Ongoing Investigations and Group’s Response
The Income Tax Department’s operation is one of the largest recent probes into a retail group in the region. With the raids still underway, officials are expected to compile a detailed report on the evidence gathered. The Pothys Group has not yet issued any official statement regarding the seizures or the allegations.