Raids continue at Chettinad Group of Companies
Chennai: The Income Tax department continued its raids for the third day today against the Rs 10,000-crore business conglomerate Chettinad Group of Companies at its premises in three states.
“The raids have been held for the third day today”, an income tax department official said.
IT officials had commenced the raids on Wednesday at 35 places belonging to the Group in Tamil Nadu, and two places each in Hyderabad and Mumbai.
The raids assume significance in the wake of a complaint from group’s Chairman Emeritus and noted industrialist M A M Ramaswamy against his disowned adopted son M A M R Muthiah whose original name is S Ayyappan.
Police have filed a case against Muthiah under various IPC sections including criminal intimidation following the complaint.
Ramaswamy had on June 9 declared that he has disowned his son M A M R Muthiah whom he adopted in 1996.
During a press meet recently, Ramaswamy had alleged that Muthiah owed a huge amount of dues to the Service Tax department.
Though Ramaswamy declined to give any quantum on how much Muthiah was supposed to pay the Service Tax department as dues, he said, “the Service Tax Department Secretary had asked him (Muthiah) to pay Rs 252 crore first”.
Ramaswamy said he had written and registered a will that all the assets which may be left at the time of his death would go only to the newly formed trusts – Dr M A M Ramaswamy Chettiar of Chettinad Charitable Trust and Dr M A M Ramaswamy Chettiar Trust.
The 84-year-old philanthropist and former Rajya Sabha MP stated that the assets would not go to Muthiah or anyone claiming on his behalf or under him. He had also said Muthiah would not perform any ceremonies or obsequies on his demise.
The family feud in the Group that has business interest across various verticals like cements, hospitality, education, came to the fore after Ramaswamy was not elected as a Director in the AGM of Chettinad Cement Corporation, the group’s flagship company, last year.