The Department of Taxes has directed the District Registrar, Thiruvananthapuram ( General) to scrutinize the income and expenditure statements, balance sheet, minutes book of the Indian Medical Association (Kerala), its related bodies and submit a report. The inspection was ordered based on a report submitted to the state government by the Additional Director General, Directorate General of GST Intelligence, Kochi zonal unit. The report was submitted following a probe against IMA ( Kerala) related to GST dues.

The Inspector General, Registration reported to the state government that the IMA (Kerala) filed income and expenditure statements till March 2023 and a list of administrative committees till 2023-24. Scrutiny of computer documents of IMAGE ( IMA Goes Eco Friendly), Professional Equipment and Employment Protection Society ( PEPS), Periyar house since 2012 showed that PEPS was recorded as a society with the number TVM/TC/1117/2013. This society filed the income and expenditure statement till September 30,2023, and details of administrative committees till 2023-24. However, other societies ( IMAGE, Periyar House, etc..) were not found registered. In the audited balance sheet filed by PEPS for the period ( October 1, 2022, to September 30, 2023) in the Thiruvananthapuram district registrar office, dues to the tune of Rs 5.24 lakh were recorded under TCS, TDS and GST heads. Also, contrary to the name registered, IMA PEPS, Indian Medical Association - IMA was found recorded, the IG, Registration cited in the report.

In the order for a probe, the government noted that to prove any irregularities by the office bearers, it is necessary to inspect the documents submitted by the IMA (Kerala) before the District Registrar and those with the organisation. The department has directed the District Registrar ( Thiruvananthapuram) to scrutinize all documents of IMA (Kerala), PEPS, IMAGE, and Periyar House.

In the letter sent by the Directorate General of GST Intelligence, Kochi zonal unit to the Principal Chief Commissioner, Income tax department, it was cited that the IMA(Kerala) floated other entities for business purposes, raising doubts about the organisation's status as a membership organisation and the validity of their claim for tax exemption. It was also found that the Association declared assets as nil in IT returns, although it owned assets in Thiruvananthapuram, Aluva and Palakkad and has leased properties in industrial parks. The turnovers of IMAGE, PEPS, and Periyar house were not found in the balance sheets, and the Association appeared to have spent only a small portion of turnover in charitable activities, which contradicted their claims of being a charitable organisation, the report said.