Daijiworld Media Network – Bengaluru (EP)

Bengaluru, Sep 29: In one of the largest seizure of unaccounted currency notes in history, the income tax department has raided several educational institutes of medicine in the state and recovered currency notes of Rs 500 and Rs 1000 denominations, the total amounting to Rs 43 crores. It is said that the scam involves an unaccounted income of Rs 265 crore. But this figure is yet to be confirmed

Officials from the Income Tax department investigation directorate, on a tip off and specific information swooped on the residence of the trustee of Vydehi Institute of Medical Sciences and Research Centre. The amount seized is said to be capitation fee collected from students, mostly for medical seats. A few of the other associated institutions in Andhra Pradesh, Tamil Nadu and Delhi and the premises of their key members of the group were also searched as part of the operation.

The search that had lasted for three days starting September 23, seized Rs 43 crores in currency notes, recovered from the premises of the group. A large number of incriminating documents and other forms of evidence have also been seized, and has resulted in the immediate disclosure of unaccounted income of over Rs 265 crore. The documents are reportedly being scrutinized.

The institution has partnered with Lakeside Hospital, several diagnostic centres, and has made investments in 300-bed hospitals in Bidar and West Bengal. The Vydehi group, whose founder chairman was the late liquor businessman DK Audikesavulu, also owns a chain of hospitals.

The institution offers medical, dental, paramedical and nursing courses, and runs a charitable hospital. Audikesavulu’s wife is the owner of the group at present.

MS Ramaiah group’s offices were searched recently and the management there admitted to huge amount of unaccounted income. Private medical colleges and the hefty capitation fees collected for medical seats have been on the I-T department’s radar for a while.