The Income Tax (I-T) department on Tuesday conducted searches on premises belonging to a real estate firms G-Square and Lotus Group, and retail firm Saravana Stores, both based in Tamil Nadu. The searches are underway at over 70 locations in Chennai and Coimbatore.
Residences of Yogarathinam Pondurai, proprietor of Saravana Stores, also came under scanner.
A senior I-T department official said that the searches are being conducted as the department received information that these firms have been suppressing their income and evading tax.
Another senior I-T official from the investigating wing said, "We are focusing on the real estate division of all these three groups."
Shutters were down at Saravana Stores outlet, opposite to Panagal Park in T.Nagar, Chennai. The store's manager said that the shop would open late evening.
Further details are awaited.