Income Tax Department raids on Tangedco’s Thermal Plants

Income Tax sleuths raided Tangedco’s thermal plants and financial controller V Kasi’s home in Teynampet on Wednesday, as well as 30 locations associated with Radha Engineering Works, a long-time utility contractor handling coal for its various plants in and around the city.

More than 100 income tax investigators were searching on Thursday. They looked into the North Chennai Thermal Power Station (NCTPS), the Mettur Thermal Plant, and the Thoothukudi Thermal Plant. Almost simultaneously, searches were conducted in the offices and homes of Radha Engineering Works’ proprietors in Guindy, Ekkaduthangal, Neelankarai, Thoraipakkam, Ennore, and Navalur.

At least five I-T personnel camped out in Kasi’s house in Teynampet, which was guarded by Armed Reserve personnel. According to department sources, the searches will continue on Thursday.

The investigators are examining documents and digital evidence seized in connection with alleged large-scale tax evasion involving the supply of coal-handling equipment and labour wages in thermal plants. Since 1994, Radha Engineering Works has been handling coal at the North Chennai Thermal Power Station.

The same company also handles coal in other thermal plants. Over the last few years, it has won contracts worth hundreds of crores. These contracts are for the operation and maintenance of coal for the upcoming NCTPS stage III.

Arappor Iyakkam, an anti-graft organisation, recently exposed several crores in fraud in transformer procurement and released a video of Kasi camping at former electricity minister Senthil Balaji’s official residence, allegedly brokering deals with bidders.

Kasi was forced to retire from the military in 2020. An order was issued in 2021 to lift his suspension. He was reassigned to the position of financial controller (revenue) before being promoted to financial controller (purchase) in September 2021.