HYDERABAD: As many as 62 teams of Income Tax sleuths carried out simultaneous searches in 35 locations housing the offices and residences of the directors of Vamsiram Builders in Hyderabad, Vijayawada and Nellore through Tuesday. The sleuths seized two briefcases full of documents, hard disks, pen drives and other material, said to be incriminating, from the possession of the company’s managing director. An I-T official said that the company has lockers in seven banks in Hyderabad which are likely to be opened on Wednesday.
Among the locations searched were the offices and premises of Badwelu Subba Reddy, the MD of the firm, at Nandagiri Hills and near Peddamma temple. The searches, which began at 6 am, stretched well into the evening.
According to I-T sources, the searches extended to properties belonging to 18 companies of which Subba Reddy and his family members are directors. Four I-T teams conducted searches in the offices of YSR Congress leader Devineni Avinash and relatives of Subba Reddy in Vijayawada and Nellore and seized three hard disks.
Also among the places searched was the residence of Janardhan Reddy at Road No. 45, Jubilee Hills. Janardhan Reddy is the brother-in-law of Subba Reddy. Sources said that the company signed MoUs with private individuals who invested money in its construction business in secret. According to I-T sleuths, the number of these private partners runs into hundreds.
The I-T sleuths are believed to have unearthed discrepancies in tax records and also diversion of funds from the company’s construction business to other platforms. I-T sleuths told TNIE that they suspect that the company used to accept 60% of the payments in cash and the remaining through cheques or online mode. They said that the company failed to mention the money collected in cash in its I-T returns to avoid paying tax.
Other realty firms on radar, says I-T official
I-T sleuths told TNIE that the searches were a follow-up to the recent series of searches on Vasavi, Sumadhura Infracon, Sahiti Infratec and the Phoenix Group. They said that during the searches, they identified several sizeable transactions between Phoenix Group and Vamsiram Builders.
“From the documents and MoUs seized from these real estate companies, we have on our radar several firms,” an I-T sleuth said. The sources said that Vamsiram Builders maintained current accounts in the name of several of its employees. They said that a certain individual, who is a son of former Rajya Sabha member, is a designated partner in Vamsiram Builders.
They said that the company maintained two different account logs, one of them being unofficial which recorded all the cash transactions and the money floated to other firms. The agency sleuths suspect that the company sent money to several firms through hawala channels.
According to the I-T sources, Badwelu Subba Reddy and Badwelu Jyothy are directors in most of the companies. Subba Reddy is the director in GAR Vamsiram Realty LLP, Vamsiram Estates LLP, Vamsiram ARR Ventures LLP, Future Trends Tech Park LLP, Vamsiram Prudhvi Builders, Vamsiram Builders Private limited (MD), Green Olive Homes, Sohini Developers, Hitech Cyber City Spaces, Vamsiram Builders and Developers Pvt Ltd, Sohini Builders, Vamsiram Builders LLP, BSR Builders, Vamsiram Developers LLP, Vamsiram Projects LLP, SJS Farm Lands LLP, Hitec Cyberspazio LLP, Orange Liner Properties Private Limited. Jyothy is the director in Vamsiram Builders and Developers Pvt Ltd, BRS Builders, Hitech Cyber City Spaces, Vamsiram Estates LLP, Sohini Developers, Vamsiram Prudhvi Builders, Vamsiram Projects LLP, Sohini Builders, Vamsiram Builders LLP, Vamsiram Developers LLP, SJS Farm Lands LLP, Hitec Cyberspazio LLP.
Meanwhile, I-T officials swooped in on the offices and residences of the directors of a prominent group of hotels in Hyderabad on Tuesday to verify their investments in Vamsiram Builders. The searches were on till late on Tuesday.
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