Revanth raids: Rs 20 crore undisclosed income of kin firms under scanner

HYDERABAD: Income Tax sleuths who conducted searches in the city for two days are verifying a possible tax evasion on undisclosed income of Rs 15-20 crore (30 per cent tax on this if proved) of companies owned by kin of Telangana Congress working president A Revanth Reddy.
None of these companies has any direct transaction with Revanth, taxmen said. However, cyber forensic experts seized hard discs and pen driver from the office, residence and companies. A final assessment will be done after verification. Several documents seized were under scrutiny and I-T officials said they couldn’t confirm tax evasion amount.

Sources said infra companies like Sri Sai Mourya Estates and Projects Private Limited in which Revanth Reddy’s brother-in-law Sudini Jayaprakash Reddy is a director has not only failed to file return of investments, but also failed to disclose taxable income of Rs 15-20 crore earned in real estate deals in Kokapet of Gandipet sub-registrar office and other areas.

Income Tax sleuths continued searches for second day on Friday and found just 560gm gold in the locker after they took Revanth’s wife Geeta to the bank and opened the locker. Valuers were brought in, but I-T sources said valuables were within limits of possession by any individual.

On Thursday, I-T seized Rs 1.5 crore cash during searches from K L Sreedhar Reddy, managing director of KLSR Infratech Ltd. Sources said Sreedhar Reddy is a friend of Revanth and the company has no link with the Congress leader. The investigation so far couldn’t link evidence of money seized from KL Sreedhar Reddy with Revanth Reddy.

Searches on the residence of Revanth Reddy’s father-in-law Pamda Reddy yielded Rs 10 lakh in cash and in other places around Rs 2 lakh to Rs 3 lakh were found. Cyber security experts were roped in on Friday. They collected pen drivers, hard disks and other hardware from the house and offices of the companies linked to Revanth’s family and friends.

I-T sleuths didn’t find documents related to foreign fund transfers or foreign account numbers to Revanth Reddy as alleged. Enforcement Directorate sleuths said there are cases of money laundering or FEMA booked against Revanth or any of his associates.

Tax sleuths are trying to ascertain source of cash seized in June, 2015, in cash-for-vote scam. A top IT investigation official told reporters on Friday that there may be some truth in allegations against Revanth. “We have seized Rs 1.4 crore cash during searches from a friend of Revanth. Last year, we conducted searches on Nexus Feeds Ltd and in their balancesheets, we found a Porshe Car, which is now found parked in the house of Revanth.” It was alleged earlier that Nexus Seeds owner G Venkat Reddy’s son is married to Revanth’s daughter.

On Friday, tensions prevailed at house of Revanth Reddy as Congress leaders and activists gathered at the house to protest motivated searches. I-T sleuths asked two others Bishop Harry Sebastian and R Uday Simha and enquired how they got Rs 50 lakh in cash that was seized during the probe into cash-for-vote scam.