Telangana Rashtra Samiti MLA booked for tax evasion of Rs 500 crore: IT department

By: | Published: January 19, 2017 10:41 PM

Reddy has been booked under sections 276 (1) and 277 of the I-T Act “pertaining to offences of wilful attempt to evade taxes and false statement in verification.

The IT officials said that the charges entail a rigorous imprisonment of up to seven years along with a fine. (PTI)The IT officials said that the charges entail a rigorous imprisonment of up to seven years along with a fine. (PTI)

Telangana Rashtra Samiti (TRS) MLA S Rajender Reddy and has been charged for tax evasion by the Income Tax department on Thursday. The MLA has allegedly amassed income of Rs 500 crore through his educational trusts and a medical college, said the IT department. A report prepared said this act was leading to “substantial loss of revenue to the government”. The IT officials said that the charges entail a rigorous imprisonment of up to seven years along with a fine.

Reddy has been booked under sections 276 (1) and 277 of the I-T Act “pertaining to offences of wilful attempt to evade taxes and false statement in verification.

The Bengaluru investigation wing of the IT deparment in December 2015 found cash of Rs 20 crore when it raided Reddy’s educational trusts. They also seized “highly incriminating documents and detection of undisclosed income of more than Rs 500 crore”, the report said.

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Reddy represents the Narayanpet Assembly constituency in Mahbubnagar district of Telangana from his party. According to him he had last month filed an anticipatory bail before the Principal Sessions Court after the tax department filed a csae in Raichur court in November. The court allowed his plea but not before asking

the lawmaker to furnish a personal bond of Rs 5 lakh and surety bonds of equal sums from two other people before the Investigating Officer (IO) of the case, PTI reported.

The MLA, they said, appeared before the IO on January 5 and furnished the bonds as directed by the Court. The case will now be heard in a more competent court.

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