TDP Rajya Sabha MP CM Ramesh has come under the Income Tax radar for suspicious transactions of over Rs 100 crore. These transactions were done through a firm Rithwik Projects Pvt Ltd (RPPL) in which Ramesh is a director. The development comes a week after the Income Tax department carried out search operations at multiple places linked to the TDP leader.
According to a report in The Indian Express, the tax sleuths could not trace the transactions worth Rs 74 crore while invoices of Rs 25 crore were found to be ‘dubious’. The report further suggests that RPPL made a series of suspicious transactions through various sub-contractors to allegedly siphon off money.
Based on documents seized during the raids, the Income Tax department has found that RPPL paid Rs 12 crore to a sub-contractor M/S EDCO (India) Pvt Ltd over the past six years. However, the I-T could not trace the address of the sub-contractor mentioned in the records, IE reported citing the authority’s findings.
The department also found that an accountant with RPPL, Saibab, was in possession of stamp and seal of the sub-contracted firm EDCO which shows that ‘it is being used to siphon off funds’, the report said.
During the scrutiny of the documents, the investigators found the total invoices of Rs 33 crore. However, what was surprising was the bills of Rs 25 crore were purchased for a commission and cash amounting to Rs 23 crore was received back. The I-T claimed in its report that neither the accountant nor the director could explain these transactions.
Among the transactions that haven’t been explained by the company are cash transactions of Rs 12.24 crore from steel suppliers; a payment of Rs 6 crore to a Delhi-based sub-contractor; a payment of Rs 8.4 crore in the company records. During the raid, the I-T team had recovered Rs 13 lakh from Ramesh’s residence. They had also found USD 3000 from the TDP leader, the IE report said.