AIADMK name crops up in I-T seizure of Rs 90 crore in Chennai

According to an I-T official, the cash and gold were seized in a series of raids that were still on late Thursday.

Written by Arun Janardhanan | Chennai | Published:December 9, 2016 4:56 am
Shekar Reddy, AIADMK, jayalalithaa, jayalalithaa death, demonetisation, illegal money-exchange, black money, income tax, chennai raid, Tirumala Tirupati Devasthanams, TTD, new notes seized, gold seized, Apollo Hospitals, demonetisation, indian express news, india news Income Tax Department Building. (Express photo by Vasant Prabhu)

OFFICIALS FROM the Income-Tax department’s investigation wing in Chennai claimed to have recovered Rs 90 crore in cash, including Rs 10 crore in new notes of Rs 2,000, and 100 kg of gold from a number of businessmen, including Shekar Reddy, who is said to be associated with the ruling AIADMK and a top IAS officer in Tamil Nadu.

According to an I-T official, the cash and gold were seized in a series of raids that were still on late Thursday. “We are taking stock of the currency and gold. The total amount of gold seized is estimated to be worth over Rs 28 crore. The raids were initially conducted at seven locations and will take a few more hours to complete as they have been extended to a dozen other places, including jewellers, offices of real-estate consultancies, contractors and hotels in Chennai city,” said the official.

WATCH VIDEO | Income Tax Department Seizes 100 kgs gold, Rs 70 crore In New Currency In Chennai

Multiple teams, comprising 20-25 officials each, launched the raids simultaneously in locations, including T Nagar, Teynampet and Anna Nagar, on Thursday morning, said officials.

The raids, particularly on Reddy, have raised eyebrows in Tamil Nadu’s political circles, with a senior AIADMK functionary telling The Indian Express that the businessman was a member of the party. The functionary, who spoke on condition of anonymity, described the raids as “another shock for the AIADMK leadership” after the death Monday of J Jayalalithaa.

Reddy is also a member of the Tirumala Tirupati Devasthanams (TTD) board in Tirupati. “He started his business career as a civil contractor. He was also involved in the sand-quarry business and had bagged some contracts from Southern Railways. But he was denied a seat from Vellore in the last general elections by Amma,” the AIADMK functionary claimed.

In 2014, Reddy was seen with O Panneerselvam, now the chief minister, when he visited the Tirupati temple as a gesture of thanksgiving following the release of Jayalalithaa from a Bengaluru prison after imprisonment in a disproportionate assets case.

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Reddy had also visited Apollo Hospitals in Chennai last month with ‘prasadam’ (offering) from Tirupati for Jayalalithaa who was undergoing treatment there.

Providing details of the seizures, the I-T official said that 70 kg of gold was seized from a leading hotel in Teynampet, where rooms were allegedly booked by associates of Reddy, while Rs 6 crore in Rs 2,000 notes were recovered from the businessman’s residence in T Nagar.

The other businessmen raided included Srinivasa Reddy, another prominent name in Chennai’s business community, and agents who were allegedly working with them in running an illegal money-exchange racket.

”At least five officials with two leading private sector banks are being summoned for allegedly arranging new notes,” said the I-T official.

The official said the raids were initiated after an illegal money-exchange agent, identified only as Prem, was taken in custody. “Besides bribing bank officials to get new currency notes, Prem was exchanging old currency notes for gold bars. His arrest led us to Reddy and his associates,” said the official.

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  1. A
    ashok s
    Dec 9, 2016 at 1:43 am
    Raiding for political gains?. Rather study the situation and act seriously
    Reply
    1. I
      Indian
      Dec 9, 2016 at 12:59 pm
      And what did BJP do then? Took their share of corruption and kept quite? Why didn't they fight against loans to crooks during UPA?
      Reply
      1. I
        Indian
        Dec 9, 2016 at 12:54 pm
        Another day, another usual news about politicians being corrupt
        Reply
        1. A
          ashok
          Dec 9, 2016 at 1:38 am
          Please name the PSB bankers so that the people can know them.
          Reply
          1. B
            Balasubramanya
            Dec 9, 2016 at 7:00 pm
            Corrupt politicians and voters even if 100 Modi comes nobody can eradicate corruption from India, because corruption is in our DNA.
            Reply
            1. K
              Kaliyug
              Dec 9, 2016 at 3:34 pm
              Reddy Get Set and Go! these are masters of the craft of stealing, hiding, re-issuing of notes. They pray hard at the Tirumala temple and prey on the poor and the public wealth of India. This rogue even fed Amma with the prasadam from the Tirumala temple, you can see the clout he has been weilding.
              Reply
              1. J
                Jawahar D.R
                Dec 9, 2016 at 4:07 am
                Without demonitisation also reddys could have been raided long before. Their sand mafia dealings were widely reported in magazines. All the black money holders in chennai and India are well known to IT. It appears that the present raid is to keep AIADMK under control. I doubt anybody wl be punished. If govt is serious it should raise at least 50000 crorea from each major city. The anamoly is small offenders only get punished.
                Reply
              2. F
                Floyd
                Dec 9, 2016 at 4:29 pm
                Mostly all the Black Money is with the Ruling Party namely BJP and their close sociates. So how much will Modi be having. Search him also
                Reply
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