In a raid by the Investigation Directorate of the Income Tax Department, the officers has seized around Rs42 crore in unaccounted cash during its search and seizure operations at the DK Adikeshavulu group of companies, including Vyedhi Medical College and hospital in southeast Bengaluru, and Mallya Hospital.
I-T officials said the department launched raids on premises of the Audikesavulu Group on September 23. Raids were also conducted on the group’s premises in Karnataka, Andhra Pradesh, Tamil Nadu and Delhi and at the residences of the key members of the group
Though officers in the Directorate remained tight lipped, according to sources, the raids were based on credible inputs and were part of its ongoing operations to detect unaccounted money and tax evasion by professional educational institutes. The alleged three-day long search operation at the premises of Vydehi Institute of Medical Sciences was part of the operation.
The amount of cash seized is likely to increase as the department is still scanning the documents seized during the search operation. Private medical colleges are amassing crores of cash by selling medical seats. We recently raided a medical college near Yeshwanthapur and found unaccounted income of Rs 275 crore. Most of this income was through sale of medical seats and sale of medication in pharmacies," sources said.
The state government has decided not to hold any investigating against the Vydehi Institute of Medical Sciences over the cash pile seized from the trustee house. “Till now no one complained about the seat blocking or donation in the college. So we will not hold any investigation. If any students lodge complaint we will investigate the issue,” said an officer.