Published Apr 21, 2026 | 6:50 PM ⚊ Updated Apr 21, 2026 | 6:50 PM
The Income Tax officials in Hyderabad have been conducting raids in the premises of real estate company Phoenix Group on Tuesday.(Supplied)
Synopsis: The Income Tax Department has sought an FIR against Tamil Nadu Congress Committee president K. Selvaperunthagai, accusing him of falsely claiming that officials raided his Chennai residence and restricted his movement on 20 April. The department said no search or enforcement action took place and that its officers only carried out “limited verification exercises” based on intelligence about suspected movement of unaccounted cash.
The Income Tax Department has sought an FIR against Tamil Nadu Congress Committee president K. Selvaperunthagai, accusing him of falsely claiming that officials raided his Chennai residence and restricted his movement on Monday, 20 April.
In a statement on Tuesday, the Central Board of Direct Taxes said there was “no search, survey, or enforcement action against Selvaperunthagai on 20 April or in the recent past.” It added that no action restricted his movement and no premises, including his Kilpauk residence in Chennai, were covered under any income tax proceedings.
Selvaperunthagai, on Monday, said IT officials raided his Chennai residence and that some officials, including Hindi-speaking personnel, confined him to the Sriperumbudur Assembly constituency under the pretext of a search, preventing him from campaigning.
The IT action coincided with Leader of the Opposition in the Lok Sabha Rahul Gandhi’s visit to the State for election campaigning. Voting for the Tamil Nadu Assembly elections will be held on 23 April, with public campaigning set to end on Tuesday.
Alleging that Selvaperunthagai’s statements amount to defamation and the spread of false information, the department said it has reported the matter to the Election Commission of India and filed a complaint with the Chennai Police Commissioner seeking legal action.
Press Release:@nsitharamanoffc @officeofPCM @FinMinIndia @PIB_India pic.twitter.com/Oi2v4HnfkZ
— Income Tax India (@IncomeTaxIndia) April 21, 2026
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In its statement, the department did not deny activity in the area but said it carried out “limited verification exercises” in parts of Sriperumbudur based on intelligence about suspected movement of unaccounted cash, and that this was not a “raid” as alleged.
“…the limited verification exercises undertaken by the Department in certain areas of Sriperumbudur were based on specific intelligence inputs relating to suspected movement of unaccounted cash. Such routine verification activities were carried out in coordination with the appropriate authorities and were not connected in any manner to Shri K. Selvaperunthagai. These exercises did not result in any findings warranting further action and did not involve or affect the individual in any capacity,” the department said.
Under Section 132 of the Income Tax Act, 1961, tax authorities—such as Principal Commissioners or Directors—can conduct searches without a prior judicial warrant if they have “reason to believe” a person has concealed income or hidden money, bullion, or documents showing evasion.
They can enter buildings, vehicles, or other places, seize assets, and examine persons on oath.
Section 133A allows surveys at business premises (not residences) during business hours by officers, including Assessing Officers or Inspectors, without a warrant. They can inspect books, verify cash or stock, mark documents for identification, and record statements, but cannot seize assets.
Verification exercises are preliminary, non-intrusive checks carried out under the department’s general powers in Sections 131 (discovery and inspection) and 133 (information gathering) of the Income Tax Act, 1961.
They are usually conducted without entry, seizure, or physical access and focus on compliance before any escalation.
(Edited by Dese Gowda)
