Day 2 of IT raids: Discrepancies in Malla Reddy Group's returns; Rs 4 Cr cash recovered

Hyderabad: For the second day, Income Tax sleuths continued raids at multiple locations related to TRS labor Minister Ch Malla Reddy and his extended family in Hyderabad. The probe has so far found discrepancies in the tax returns filed by Malla Reddy Group, especially Engineering and Medical Colleges. IT sleuths also recovered cash of Rs 4 Cr seized from Ashok Reddy, who is a relative of Malla Reddy. And from the house of Ch Malla Reddy's son Mahender Reddy's personal assistant.

IT sleuths concluded searches at the minister's residence in Bowenpally. However, the searches are underway at other locations. The raids are in connection to an alleged tax evasion with regard to Malla Reddy Institute of Medical Sciences.

Searches which began at 5.30 AM on Tuesday morning were held in multiple locations including his residence in Bowenpally, Palm Meadows community in Kompally. Around 50 sleuths from the anti-tax evasion wing knocked the minister's doors. Raids are also against his son-in-law Rajashekar Reddy who earlier contested as on TRS ticket from Malkajgiri parliament constituency but lost to Congress Telangana Pradesh Committee Chairperson A Revanth Reddy. Malla Reddy is the chairman of the Malla Reddy group of colleges, a minister for labor and legislator for Medchal assembly constituency.

Malla Reddy Institute of Medical Sciences is a private Medical College started in the year 2012-2013. The Institute is 20 kms from Secunderabad and Hyderabad. In the past several complaints were raised against alleged 'selling' of medical seats for an exorbitant price.

How ED, IT, and CBI are now focusing on TRS ministers and leaders

Pertinently, there has been a rise in ED, IT, and CBI raids and cases against TRS Minister and MLAs in the last one year . Apart from Ch Malla Reddy, three more senior TRS leaders are under enforcement radar. Not too long ago, granite companies associated with the TRS minister and Karimanagar MLA Gangula Kamalakar were raided. ED also conducted searches in Hyderabad and Karimnagar.

The probe found that granite companies have benami accounts. It also exposed its links with a Chinese firm named in Panama Leaks. Around five companies have been booked under FEMA.

In October 2022, the Directorate of Enforcement provisionally attached 28 immovable properties and other assets worth Rs 80.65 Crore belonging to TRS MP Nama Nageshwar Rao and his family members in an ongoing money laundering case against M/s Ranchi Expressway Ltd, Madhucon Projects Limited, and its director and promoters under the provisions of PML Act 2022.

Nama Nageshwar Rao is a promoter and director of the Madhucon group of companies and a personal guarantor to the Bank loan defaulted by the company. ED has also attached the registered office of the Madhucon group of companies and residential property at Jubilee Hills, Hyderabad. In total, ED found a direct diversion of Rs 361.29 Crore from the bank loan obtained by Ranchi Expressways Limited.

On November 21, ED sleuths questioned TRS Minister Talasani Srinivas Yadhav's personal assistant with regard to an ongoing Casino case. The enforcement agencies are probing into the alleged money spent on gambling, especially in Nepal. ED grilled Harish in regard to an alleged violation of the Foreign Exchange Management Act (FEMA) by Chikoti Praveen.