Black money worth Rs 200 crore found in I-T raids on TN film producers and financiers

On August 2, Income Tax Department sleuths conducted searches at the Madurai home of financier-cum-producer GN Anbu Chezhiyan. According to media reports, 10 properties in Chennai and 30 properties in Madurai, including his residence and a theatre, were being searched.

Madurai native Anbu, a well-known film financier in the Tamil film industry, has financed numerous projects. He also produces and distributes films under his Gopuram Films banner. The raids come just five months after Chezhiyan's daughter's grand wedding in Chennai which was graced by celebrities like Rajinikanth, Kamal Hassan, Suriya, and Boney Kapoor. Many politicians were present too.

Raids were further conducted at the T Nagar office of film producer Kalaipuli S Thanu in Chennai and film Producer SR Prabhu's Teynampet residence.

The income-tax department discovered "undisclosed" income of more than Rs 200 crore after raiding some Tamil Nadu film producers, distributors, and financiers. During the raids, the department claimed to have seized Rs 26 crore in "undisclosed" cash and more than Rs 3 crore in gold jewellery.

In a statement, the Central Board of Direct Taxes (CBDT) said tax evasion has been found in the film production houses, as the actual amounts realised from the release of the films are much more than the amounts shown in the regular books of account.

"The unaccounted income so generated by them is deployed for undisclosed investments as well as for various undisclosed payments," the CBDT added.

"As per the evidence, the distributors have formed syndicates and have systematically suppressed the theatre collections, resulting in the suppression of actual income," it alleged.

For the uninitiated, in 2017, Ashok Kumar, cousin of director Sasikumar died by suicide with a note alleging mental torture and trauma over financial issues with Chezhiyan.

On February 5, 2020, prominent figures belonging to the Tamil film industry came under the Income Tax scanner and searches were conducted at 38 locations across Tamil Nadu. Four major players from Kollywood, including actor Vijay, and financier Anbu Chezhiyan were raided by the Income tax department.