Income tax raids private Medical and Engineering Colleges all across A.P
Income tax department has slammed number of private medical and engineering colleges all across Andhra Pradesh in charge of selling management quota seats at high rates ranging between 45 lakhs to 1.2 Crore INR.
The department has confirmed that multi crores were clutched from these institutions during the search operation and is likely to go on all weekend.
The colleges that were searched on Day One are Konaseema Medical College (Amalapuram) Chalmeda Anand Rao Medical College (Karimnagar), Santhiram Medical College (Nandyal) NRI Institute of Medical Sciences (Visakhapatnam) and GSL Medical College (Rajahmundry).
Many other colleges are under the scanner of I.T department and department expects to recover hundreds of crores by the end of the raid. Colleges like Godavari Institute of Engineering and Technology and Chaitanya group of colleges were also searched.
On the trail to crackdown, the I.T department raided the private residents of college officials and people related to colleges. "In fact, we seized around Rs 10 crore from the Chalmeda Anand Rao Medical College chairman's house in Hyderabad alone," officials confirmed. The residence of an official from NRI Institute management too was searched.
Many important documents were also taken into custody by the search team, headed by P Satya Prashant and B.V Rao (both from I.T department’s investigation wing) when teams raided the colleges and residence’s of the college officials.
"In fact, a few colleges were found selling their management seats for more than the declared amount. If the going rate of a seat is between Rs 50 and 80 lakh, these colleges are charging up to Rs 1 crore for it. Worse, PG medical seats are being sold for as high as Rs 80 lakh to Rs 2.5 crore depending on the specialization," an official secretly confirmed. He added that radiology was the most preferred PG course, especially in Hyderabad-based medical colleges.
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"Private medical colleges are generally owned by registered trusts and get 100% tax exemption. So while they do not pay any tax on their earnings, they collect crores of rupees as fee from students," said a senior I-T official. "As there was fear of backlash from college managements, the raiding team were accompanied by armed policemen. Except for few stray incidents, the raids have been peaceful so far," the official said.
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