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
                1. 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
                  1. F
                    Floyd
                    Dec 9, 2016 at 4:19 pm
                    When we go to the bank to take our own cash we a limited to just 10,000 when we have to pay for Rent - 10000, gas 400, TV 400, school 2500 and other expenses that value upto almost 25,000. But Modi gives all the currency to the rich fat F$$#s. I hate Modis govt
                    Reply
                    1. G
                      Gopalan Ramesh
                      Dec 9, 2016 at 12:41 pm
                      Let us support our PM on a honest exercise for the first time. Had it been the congress our black money would have been safe and their running into thousands of crores would also had been safe but our country would have been poorer. With that shadow economy we could have never dreamt of becoming a superpower.
                      Reply
                      1. G
                        gopal
                        Dec 9, 2016 at 3:06 am
                        worried that IT might let off Tamil Nadu Politicans..looks like actions are happening..one building in Chennai can yield crores of black money..hope IT dept makes a visit there also.
                        Reply
                        1. I
                          Inamdar
                          Dec 9, 2016 at 3:14 am
                          What govt doing to stop this, 10 crore ₹2000 notes, it's Amazing! How these converting with new notes, govt. restricting to common people to 2,000 , 4,000 etc, that also many ATM out of cash, but RBI daily telling that we have enough Cash, but very little or no cash in Bank and ATM, this is not cheating for people ??
                          Reply
                          1. K
                            Kalyanaraman
                            Dec 9, 2016 at 12:31 pm
                            Almost all the banks including Nationalised banks are involved with these black money holders. The bank managers and some staffs are getting commission for arranging new notes to these black money holders whereas we are all suffering. This is the case all over India.
                            Reply
                            1. N
                              Niladrinath Mohanty
                              Dec 9, 2016 at 3:03 am
                              Corrupt bank officials have earned a lot of black money following demonetization of 500 and 1000 rupee notes.
                              Reply
                              1. M
                                Murthy Suppusamy
                                Dec 9, 2016 at 2:32 am
                                Please don't add political color to cleansing work that Modi started, for God's sake.
                                Reply
                                1. R
                                  Rathi manmathan
                                  Dec 9, 2016 at 8:02 am
                                  It will be a surprise only if ADMK or DMK's name does not crop up
                                  Reply
                                  1. T
                                    Thy
                                    Dec 9, 2016 at 6:20 am
                                    I think a fundamental point missed is that most bad loans that are bad were sanctioned during the UPA regime. Most of Mallya's loans were disbursed during the UPA rule. All complicit in such sanctions done by deviating rules should be held responsible.
                                    Reply
                                    1. S
                                      Sanjay Bhattacharya
                                      Dec 9, 2016 at 3:40 am
                                      Demoneization has sent fear among the blackmoney holders. Hundreds of crores are getting caught and dozens of black marketeers are getting arrested. We working people w heartedly support this bold move by the Govt. It is only person like Modi who can make such surgical strike.
                                      Reply
                                      1. S
                                        sathiishkumar
                                        Dec 21, 2016 at 12:34 am
                                        corrupt is something but we dont c as this amount as peanuts showing , what was actually plotted itself biggest politcs hare when w country turning heavily pushed for digital exchange - stopping all lower end movement s of jobs to movement of business is hanged out crowded people still stand on the que for their owneres still it is being lt;br/gt;GOvt should have planned when u execute demontize u should clarify how for ur extending time , even regular transaction is hot done movement stopped and even the banks cannot carry this much work load and frauds will be more in numbers lt;br/gt;lt;br/gt;we still this money all goes to central what they do first they got enought scam money too for their election expenses check out ther central ruling party works and where the money come from
                                        Reply
                                        1. S
                                          sathiishkumar
                                          Dec 21, 2016 at 12:43 am
                                          will central ruling party will be questioned by president or the party will function for their period will complete lt;br/gt;lt;br/gt;people are happy on demontize other than daily standing atm to private banks too not working hardly only one or two as each district as town or city runs with few atms hardly lt;br/gt;so pm to finance minster and governor will be questioned for that lt;br/gt;lt;br/gt;be it ruling party does not mean they have every right to troll common people for their daily standing it is not even atms is not functioning distribution of money non availablitty even private banks are stopped that too almost u allowed to wonder lt;br/gt;lt;br/gt;when we are no way digital online should have come slowlwy instead again this peopl made problems lt;br/gt;lt;br/gt;now u can c openly each country started demontize itself making black money to white money open movement --lt;br/gt;lt;br/gt;what is here after crr for banks when a pension is not released just printed that we have what does it carry when we have a comitment to pay for those who dont have online , or card access how that we pay it is just bjp remaining the movement of brtiishes again saying swadesh and copy cat of Jallianwala Bagh macre, just movement just like general dyer
                                          Reply
                                          1. I
                                            Indian
                                            Dec 9, 2016 at 5:31 am
                                            Surgical strike my foot. If these tax money is used for the betterment of common man then ok. But these money is used to waive of lacs of crores of corporate loans default in public sector banks. Which can be termed as corruption of tax money by government . Black money is corrupt money. whether it tax not paid black money or tax money used to make black money by corporates.
                                            Reply
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