Ahead of election year, Telangana has witnessed a series of investigations against lawmakers and their family-owned companies for money laundering, foreign exchange management violations and tax evasion.
Enforcement Directorate, income tax investigation unit and Central Bureau of Investigation have launched a probe against ministers, MLAs and MPs of Telangana Rashtra Samithi, the ruling party in the state.
While chief minister K Chandrashekar Rao's government issued orders giving general consent to CBI, the agency's unit from Delhi is now probing his daughter and member of legislative council K Kavitha in connection with Delhi excise policy scam. She was being grilled at her home on December 11.
ED has already attached properties of TRS parliamentary party floor leader in Lok Sabha, Nama Nageswara Rao, family-owned company Madhucon in connection with Ranchi Expressway loan fraud. Twenty-eight immovable properties and other assets of Rs 80 crore of Nama Nageshwar Rao and his family members have been attached. This follows an ongoing money laundering case against Ranchi Expressway Limited, Madhucon Projects Limited and its directors and promoters under the Prevention of Money Laundering Act. Rao is a promoter and director of the Madhucon group of companies and a personal guarantor to the bank loan defaulted by the company.
Madhucon group’s registered office and residential property at Jubilee Hills, Hyderabad, was attached on October 17.
ED has conducted searches and grilled TRS Minister Gangula Kamalakar and his family members in connection with the granite industry and FEMA violation in exports.
On November 10, ED broke open the minister's residence cum Sweta Granites registered office in Karimnagar as staff didn't cooperate, and the minister was away in Dubai on holiday with family. The granite exporters evaded several crores of taxes in granite exports made to China.
ED also grilled TRS minister Talasani Srinivas Yadav’s family members in connection with the FEMA case of Nepal casino. Enforcement Directorate grilled Talasani Srinivas Yadav's PA Harish in connection with the Nepal casino case.
On November 22, ED questioned Harish about the financial transactions with casino operator Chikoti Praveen. ED sources said Harish has made payments and received money from Chikoti for gambling. The agency is probing FEMA violations where in hawala route is used to transfer money in and out of Nepal.
In a series of searches, the Income Tax investigation unit has conducted a probe into suspected tax evasion of several entities allegedly connected with ruling TRS.
Income Tax officials who conducted searches on the properties of Telangana Minister for Labour and Employment Ch Malla Reddy, his family members and associates unearthed Rs 18.5 crore of unaccounted cash and 15 kilograms of gold ornaments stashed in the house, colleges and lockers.
Sources in CBDT said apart from cash seized, several documents and data recovered so far indicated the total evasion would run into a few hundred crores of rupees which is yet to be quantified.
Income tax searches that started on November 22 on the educational institutions owned by Ch Malla Reddy and his son-in-law Marri Rajashekar Reddy of MLR group ended on Thursday morning.
Income Tax searches were also conducted on Phoenix group, Vamisram Builders, Honer Homes, Vasavi constructions and several other realty firms. Meanwhile ED is questioning the actor Vijay Devarakonda and film director Puri Jagannadh for FEMA violation regarding ‘Liger’ movie based on a complaint filed by a Congress leader who alleged that KCR's daughter Kavitha had financed the film.
(With inputs from agencies)