HYDERABAD: For the third consecutive day, Income Tax (I-T) officials carried out searches at the offices and residences of the chairpersons, managing directors and other key members of four companies — Rajapushpa Properties (RP), Muppa Projects India Private Limited (MPIPL), Vertex Homes (VH) and Vasudha Homes Private Limited (VHPL) — in the city on Thursday.
Stating that the raids might continue for two more days, officials said they recovered a number of documents containing details of transactions between RP and MPIPL. However, VH and VHPL also violated I-T norms and records containing details of online and other transactions apart from cash flow to other companies for the last four years were seized, they added.
Sources said agency officials raided the residences of Bharat Rashtra Samithi (BRS) MLC P Venkatarami Reddy and his brother in Tellapur and seized several documents, hard drives and account records. Sources said a team of officials also conducted searches on Narender Reddy, who is the MLC’s personal assistant.
Officials have reportedly collected documents of several key agreements allegedly signed between Rajapushpa and Muppa Projects regarding the development of lands owned by the latter in the city by the former. Meanwhile, 10 teams carried out searches at 10 locations of the RP group, located on the outskirts of Hyderabad where the company is currently carrying out construction.
Undisclosed cash
Officials also raided six locations of MPIPL and have reportedly found incriminating evidence of tax evasion. They discovered several documents and agreements where the revenue was allegedly not disclosed in their I-T returns, potentially hiding it in the actual returns from the business, sources added.
As many as 15 locations of VHPL and its sister companies were raided in Hyderabad. Officials have reportedly asked Vasudha Homes MD MV Raju, who allegedly went to Guntur to avoid the searches, to return and also raided the residences of his close relatives. Officials recovered incriminating documents and hard disks from the offices. Similarly, searches were carried out in the offices of Vertex Homes and its sister companies in the city.
Sources reported that the companies allegedly collected large sums of money in cash from advance bookings but failed to report them in their tax returns. Officials claimed that the money was used for other purposes and not disclosed for the last four fiscal years.