I-T probe: ‘Firm linked to TDP MP CM Ramesh siphoned off Rs 100 crore’

While TDP sources had then said the searches were a result of the notice given by Ramesh to the I-T Department as a member of the Parliamentary Accounts Committee, state minister.

Chief Minister Chandrababu Naidu’s son Nara Lokesh had then said, “The Centre has begun intimidation politics with I-T raids on party leaders Master Rao, Sujana and now C M Ramesh. TDP leaders are being unduly targeted for raising voice against the Centre for breaking every promise made during bifurcation. We will not be cowed down by this.”

Following scrutiny of the documents seized during the searches, the I-T department has now found that a series of dubious transactions were made by RPPL, in which C M Ramesh is a director, through various sub-contractors to allegedly siphon off money.

The I-T probe has allegedly found that a sub-contractor, M/S EDCO (India) Pvt Ltd, was paid Rs 12 crore over the past six years by RPPL. However, the company could not be found at the four addresses mentioned in the records, a report prepared by the I-T department said.

The probe also found that correspondences of EDCO were received by one Saibab, who is an accountant with RPPL. He was also found in possession of the stamp and seal of EDCO. “It shows that it is being used to siphon off funds,” the report said.

The probe also found that of the total bills of Rs 33 crore, “bills of Rs 25 crore purchased for a commission and cash amounting to Rs 23 crore were received back”. The report said that neither the accountant nor the director could explain this discrepancy.

I-T officials found documents that showed the company received Rs 12.24 crore from steel suppliers but the cash transaction could not be explained. “Another mail attachment showing Rs 7.98 crore cash received from steel suppliers for 2 per cent commission was also found,” the report said.

A payment of Rs 6 crore to a Delhi sub-contractor, M/S NKG Constructions, could not be substantiated as no bills were found, the report said.

The probe also found that some of the money, such as a loan of Rs 2.97 crore, was utilised for personal purposes by those involved with the company. Bills of Rs 25 crore for steel purchases by M/S AAK Steels and M/S BSK have been found to be dubious and are being verified by the I-T Department.

I-T officials found payment worth Rs 8.4 crore in the records to be unexplainable and recovered Rs 13 lakh from Ramesh’s residence. They also seized US $ 3000 from the TDP leader.

When contacted, Ramesh told The Indian Express, “Ask the I-T guys. Don’t ask me.”