The Income Tax department on Monday conducted surveys in Bangalore and Hyderabad on service providers which had been engaged for the wedding of former BJP minister Janardhan Reddy’s daughter. A wedding extravaganza, estimated to have cost about Rs 100 crore, organised by Gali Janardhan Reddy, for his daughter concluded at the Palace Grounds in Bengaluru on Wednesday. Officials said that taxmen visited seven locations in Bengaluru and three in Hyderabad of those event management companies which were given contracts to give a blockbuster look for the wedding.
They said the department, after receiving reports of high spending for the event, initiated the action and is checking the account books, payment receipts and contract portfolios of these firms who specialise in creating special ambience and customised display for high-end spending clientele during their special events like weddings.
The firms include those providing special swiss tents, expensive cutlery, multi-cuisine food and pyrotechnic dealers who brought a lavish style to the event.
Once the scrutiny of accounts and contract books is done, they said, further action of issuing notices to investigate tax evasion by both the contractor and the contractee will be undertaken.
The lavish wedding had attracted the attention of Income Tax officials, who had said they will question the former minister. Sources in the IT department said officials have already studied the costs incurred, and further investigations would be carried out.
The extravagant wedding came at a time when the BJP government has initiated a demonetisation exercise to flush out black money. The wedding preparations came in for a lot of criticism. While there were reports that the BJP had asked its leaders to stay away from the wedding, former minister Suresh Kumar said, “It is a private function and there is no official directive on it.’’
(with inputs from PTI)