The Income Tax Department on Saturday wrapped up a five-day search operation on the Sri Chaitanya group of educational institutions, spanning Hyderabad, Vijayawada, Chennai, Bengaluru and Mumbai. The large-scale searches were conducted over suspicions of massive tax evasion and the diversion of funds into other business ventures.
According to sources within the IT department, the search operation uncovered suspected tax evasion exceeding Rs 230 crore. Investigators reportedly seized crucial digital evidence, account books, transaction data from software systems, and records of cash fee collections. However, an official confirmation on the exact quantum of tax evasion is yet to be issued.

Multiple Software Systems Used to Conceal Income
The raids focused on the group's corporate office in Madhapur, Hyderabad, along with multiple branches across different states. Officials allege that a substantial portion of tuition and admission fees was collected in cash, with only a fraction recorded through official banking channels for tax purposes. Investigators also discovered that the management utilized separate software systems - one for fee collection and another for tax filings-suggesting deliberate misrepresentation of income.
Additionally, sources indicate that cash collected from students was diverted into real estate and other business activities instead of being accurately reported for tax filings.
Rs 5 Crore Seized; Bank Lockers Investigated
During the search, IT officials also examined the residences of Sri Chaitanya's directors and key employees, leading to the seizure of Rs 5 crore in unaccounted cash. Several bank lockers linked to the institution's top management and their family members were also accessed for further scrutiny.
Institution's Management Summoned for Investigation
Following the latest operation, the tax department has summoned the management and directors of Sri Chaitanya to appear before investigation officers next week. They have been instructed to present all relevant financial records to substantiate their tax filings and address concerns related to financial irregularities.
Repeat Offender? Past Raids and Allegations
This is not the first time Sri Chaitanya has come under the tax department's radar. In 2020, IT officials had conducted similar searches, seizing Rs 11 crore at the time, over allegations of undisclosed income and tax violations.
With the recent findings, the I-T department is expected to deepen its probe into the financial dealings of the group, potentially leading to penalties and further legal action. The case highlights the increasing scrutiny on private educational institutions, many of which have been under investigation for tax non-compliance and financial misreporting.