IT raids on Naidu's aides unearth Rs 2000 Cr illegal money

By Newsmeter Network  Published on  13 Feb 2020 2:59 PM GMT
IT raids on Naidus aides unearth Rs 2000 Cr illegal money

Hyderabad : Income tax searches carried out in Andhra Pradesh, and Telangana unearthed Rs 2000 crore unaccounted cash, said Commissioner of IT Mr Surabhi Ahluwalia.

In recent times, IT sleuths searched 40 locations including Hyderabad, Vijayawada, Kadapa, Vishakapatnam, Delhi and Pune. The search action included three prominent infrastructure groups, namely RVR, R K and Avexa based in the two Telugu speaking states.

The statement is significant, as it comes on the heels of IT raids carried out on the residence of Chandrababu Naidu's former Personal Secretary Pendyala Srinivas Rao and Kilaru Ramesh, classmate and close friend of N Chandrababu Naidu's son Nara Lokesh.

Following a tip-off received on possible cash flow into DNC Infra company, which was earlier raided by Income Tax. Sleuths searched the houses and offices of Nara Lokesh's key aide Kilaru Rajesh and several infra companies linked to Telugu Desam leaders in Hyderabad, Vijayawada and Kadapa.

Besides Naidu's close aides , TRS leader B Vinod Kumar's brother Boinapally Srinivasa Rao's companies and residences were also searched. Boinapally Srinivasa Rao is a director of 19 companies including infra firms. Prathima Hospitals is located in Kukatpally, Kachiguda and Karimnagar.

"Investigation led to busting of a major racket of cash generation through bogus sub-contractors, over-invoicing and bogus billing. Several incriminating documents and loose papers were found and seized during the search, apart from email, WhatsApp messages and unexplained foreign transaction unearthed during the searched' said the IT commissioner.

Besides the properties owned by giant Infra company owners, IT sleuths carried out simultaneous searches against close associates including ex-personal secretary of a prominent person and incriminating evidence seized, The commissioner added.

What did the investigation reveal?

The search operation revealed that Infrastructure companies had sub-contracted work to several non-existent (bogus entities). Preliminary estimates suggest siphoning of more than Rs 2000 crore through a transaction that was layered through multiple companies. "The Infra companies selected small entities with a turnover of less than Rs 2 Crore to avoid maintenance of books of accounts and tax audits. However, these entities either exist and found to be shell companies" said the IT commissioner.

During the searches in TS and AP, IT sleuth seized Rs 85 lakh cash, jewellery worth Rs 71 lakh and more than 25 bank lockers were attached. Cash seized is beside the Rs 2000 unaccounted cash. "Foreign Director Investments receipts of several crores in the group companies of one of the infrastructure companies is suspected to be the round-tripping of its unaccounted funds, as per the IT officials. '

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