The Income Tax Department has unearthed undisclosed income of more than Rs 1000 crore in raids carried out on the premises of two business groups in Chennai. While one is a leading bullion trader the other is one of the biggest jewellery retailers in South India, according to an official statement issued on Sunday.

The search operations were carried out at 27 premises located in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Trissur, Nellore, Jaipur and Indore on Thursday, the I-T Department said.

Unaccounted cash to the tune of Rs 1.2 crore has been seized so far while further investigations are in progress.

The evidence found in the premises of the bullion trader revealed that there were unaccounted cash sales, bogus cash credits from its branches, cash credits in dummy accounts in the guise of advance for purchases. Unexplained cash deposits during the demonetization period, bogus outstanding sundry creditors and huge unexplained stock variations were also detected during the search.

The evidence found in the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers. Cash loans had been given to builders and cash investments were made in real estate properties. Unaccounted gold bullion purchases, inflated wastages in conversion of old gold to fine gold and jewellery making were also found.