HYDERABAD: The Income Tax Department’s searches at properties owned by YSRCP Rajya Sabha MP Alla Ayodhya Ramireddy and his family-owned Ramky Group in the city led to detection of artificial loss of approximately Rs 1,200 crore. It was found that they had incorrectly claimed bad debts to the tune of Rs 288 crore on account of related party transactions, which was set off against the profits earned.
The entities and their associates have admitted to having an unaccounted income of Rs 300 crore and have also agreed to pay the tax, a release from the I-T department on Friday said. The searches were carried out on Tuesday, on the allegations that Ramky Group has shown huge losses.
During the searches, incriminating documents relating to this artificial and incorrect claim were found. Unaccounted cash transactions with the associates of the group have also been detected during the search, and the quantum and modus of the same are under examination.
Apart from the incriminating documents, several loose sheets were seized, indicating the involvement of the group in unaccounted transactions. It was also found that the group had sold its majority stake to a non-resident entity based in Singapore during the 2018-19 Financial year and had earned huge capital gains.
The group had subsequently devised various schemes by entering into a series of share purchase, sale, non-arm's length valued subscription and subsequent bonus issuance, creating a loss which was set off against the capital gains earned. It was also found that the loss was artificially created to set off the respective capital gains. Further investigations are in progress.