IT raids against YSRCP MP Ayodhya Ram Reddy find Rs 1200 Cr artificial loss

Hyderabad: The Income-Tax searches against YSRCP Rajya Sabha Parliamentarian Alla Ayodhya Ram Reddy led to the detection of artificial revenue loss (on paper) of Rs 1,200 crore. The company admitted to have withheld unaccounted cash of Rs 300 crore, IT sleuths confirmed.

The Income-Tax Investigation of Hyderabad on 6th July conducted searches against 15 properties owned by Alla Ayodha Rami Reddy in Hyderabad including CEO Enclave located in Gachibowli . The searches were in regard to check whether the losses shown by the group companies of Ramky are 'genuine'.

YSRCP MP Alla Ayodhya Ram Reddy- Chairman of Ramky group of industries is engaged in real estate, construction, waste management and infrastructure. The activities of waste management are spread across India while real estate activities are mainly concentrated in Hyderabad. The companies include, Ramky Towers, Villas, Ramky Infrastructure, Life Science, Trading and more. According to the official records of the Group, YSRCP MP Alla Ayodhya Ram Reddy is not the director in any of these companies.

IT searches led to

Ramky group of company devised various 'colourable' schemes by means of entering into a series of share purchase/sale/non arm's length valued subscription and subsequent bonus issuance with related parties, creating a loss which was set off against the capital gains earned.

During the searches, IT sleuths seized documents, loose sheets indicating the involvement of the group in 'unaccounted transactions'. It was found that Ramky Group had sold majority stake, to a non-resident entity based in Singapore, in one of its group concerns during FY 2018-19 and had earned huge capital gains.

The searches led to officials seizing Incriminating evidence, which indicates that the loss was artificially created to set off the respective capital gains. The Company allegedly showed artificial loss (on paper) of approximately Rs 1,200 crore, which was to be taxed in the hands of respective assesses.

Further, it was found that an assesse had incorrectly claimed bad debts to the tune of Rs 288 crore on account of related party transactions, which was set off against the aforementioned profits earned. In revelation of sorts, the searches detected unaccounted cash transactions with the associates of the group. The sleuths are investigating the the same.

As a result of the search and seizure operation, and on the basis of various incriminating documents found, the entities and associates have admitted to having an unaccounted income of Rs 300 crore and have also agreed to pay due taxes. Investigation on.

It is to recall, earlier the Central Bureau of Investigation probing Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy's assets case, had named Alla Ayodhya Ram Reddy as accused 5 in the quid pro case. He is among the 6 accuses named in the 88 page long charge-sheet.