Malla Reddy’s auditor, 13 staffers grilled by I-T officials in Telangana

HYDERABAD: Income-Tax department officials on Tuesday grilled 14 employees of Malla Reddy educational institutions regarding transactions by the group’s engineering and medical colleges to detect possible tax evasion.

The 14 employees, including Labour Minister Ch Malla Reddy’s auditor Seetharamaiah, appeared before the tax officials at the Aayakar Bhavan in Basheerbagh.

Principals of Malla Reddy educational institutions VA Narayana, BV Ashok, Dr Vaka Murali Mohan, Dr KS Rao, employees J Ravikanth, and Rajeswar Reddy and two accountants were among those who appeared before the I-T officials at Aayakar Bhavan. 

The I-T officials questioned Seetharamaiah on tax returns submitted by the group as well as the minister’s personal transactions. The officials questioned him for almost five hours on Malla Reddy’s role in the financial transactions.

According to sources, the I-T officials focused on the allotment of seats in engineering and medical colleges. They enquired about how the payments were made and to which bank accounts the money was credited.

The officials asked the accountants and principals how the colleges collect fees, whether it is in cash or online or in the form of cheques and whether the authorities issue any receipts. The I-T officials also enquired about whether the accounts were maintained in digital logs or in manual books. If the accounts are maintained manually, they should be submitted to the officials, the employees were told. 

The I-T officials are likely to question the directors of the group’s colleges, Marri Rajasekhar Reddy and Bhadra Reddy on Wednesday.