Tax evasion: IT raids underway at TRS Minister Ch Malla Reddy

Hyderabad: Income Tax department carried out raids against Telangana minister for labor, Ch Malla Reddy and his extended family in Hyderabad on 22nd November. 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. 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.

Pertinent to note that in a year's span central enforcement agencies especially ED, IT and CBI carrying out raids, booking cases against TRS Minister and MLAs is on a rise.

Including Income Tax raids against Ch, Malla Reddy, three more senior TRS leaders are under enforcement radar. Not to long ago granite companies associated with TRS minister and Karimanagar MLA Gangula Kamalakar, were raided. Searches were held in Hyderabad and Karimnagar by ED. Probe found that these granite companies have benami accounts and showed transactions with a Chinese firm named in Panama Leaks. Around 5 companies have been booked under FEMA.

In October 2022, 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 promoter and director of Madhucon group of companies and a personal guarantor to the Bank loan defaulted by the company. ED has also attached the registered office of Madhucon group of companies and residential property at Jubilee Hills, Hyderabad. In total, ED found direct diversion of Rs 361.29 Crore from the bank loan obtained by Ranchi Expressways Limited.

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