VIJAYAWADA: In a surprise move, the former Union minister of state for science and technology YS Chowdary, popularly known as Sujana Chowdary, quit the TDP and joined the BJP along with three other Rajya Sabha MPs.  Chowdary's move did not come as a surprise to many, as he has been facing several legal problems and his joining the ruling party at the Centre at this juncture is being seen as a move to save his skin. 

In 2017, the CBI registered three FIRs based on complaints from three banks - The Central Bank of India, Andhra Bank and the Corporation Bank - in 2017 against Chennai-based Best & Crompton Engineering Projects Ltd (BCEPL), a part of Sujana Group of Companies owned by YS Chowdary. 

The three banks were saddled with a loss to the tune of Rs 364 crore (Central Bank of India Rs 133 crore, Andhra Bank Rs 71 crore and  Corporation Bank Rs 159 crore) by the company, which took loans by allegedly falsifying accounts and submitted false statements. 

BCEPL along with other group companies of Sujana Group were functioning under the chairmanship of YS Chowdary. During the investigation undertaken by Enforcement Directorate into the allegations of Rs 6,000-crore bank fraud against the companies owned by Chowdary,  revealed that all the directors of various Sujana Group companies acted under the instructions of  YS Chowdary, Enforcement Directorate (ED) officials said, while investigating the allegations. 

In a statement issued after its searches, the ED said, "searches under Prevention of Money Laundering Act (PMLA) were conducted at the residence and offices of YS Chowdary as part of an investigation into the alleged Rs 6,000-crore bank fraud by more than 120 shell companies controlled by the former minister. Searches resulted in the recovery of incriminating documents and six luxury cars purchased by Chowdary in the name of shell companies."

The documents recovered by the ED revealed that the group companies were facing various FEMA/DRI/CBI cases. Besides forex transactions, the documents reportedly indicated that most of the companies the group was operating had no genuine business activities. 

As part of the investigation, searches were conducted on October 8, 2018, at residential and office premises of the key officials of BCEPL at Chennai, Bengaluru and Hyderabad. Certain incriminating documents were recovered and seized for further investigation.  ED officials said searches also resulted in the recovery and seizure of 126 rubber stamps of various shell companies from the business premises in Hyderabad.

However, Chowdary, during a media interaction, had refuted ED’s allegations and said he’s neither the chairman nor in an executive position in any of the Sujana Group companies as he had quit these firms in 2010.  

“Of the six cars seized by ED, three were registered in individual names and three in the name of companies. The three companies which own the cars are not dummy companies as alleged as they are filing tax returns. I have only a symbolic stake of 1% in these companies,” he said.

Meanwhile, on June 1, 2019, the Banking Security and Fraud Cell (BSFC) of the CBI, Bengaluru, carried out searches at 12 different places including the office and residence of Chowdary in connection with the Rs 71-crore Andhra Bank fraud case. Earlier, the CBI officials summoned him for questioning and he appeared before the CBI in Bengaluru office.

On the other hand, another TDP MP (Rajya Sabha) CM Ramesh is also facing I-T trouble.  In October 2018, I-T department raids were conducted on Rithwik projects private limited based in Hyderabad, which is owned by him and his properties in Hyderabad and Kadapa district. 

Rithwik Projects is reportedly said to have a turnover of close to Rs. 1,000 Crores. It was reported that as per the 2015-16 and 2016-17 financial reports of the company, the profits were doubled in a year and there was a major flow of cash as investments into the company, which was the reason for I-T raids. The Rithwik projects have secured more contracts, allegedly after TDP Government came to power in 2014. Some of the projects being executed by the company include several packages under HNSS and GNSS in the state, which run into several crores. 

Taking a serious view of the I-T raids and describing them as politically motivated ones, Ramesh at that time decided to take legal action.