HYDERABAD: Labour Minister Ch Malla Reddy’s son, son-in-law and others were grilled by the Income Tax (I-T) department officials on the source of cash and other articles of evidence seized from their residences and offices, at Basheerbagh on Monday.
The I-T department officials summoned 14 persons, including Minister Malla Reddy, to appear before them. As per the notices, the minister’s son Bhadra Reddy, brother Gopal Reddy, son-in-law Marri Rajasekhar Reddy, relatives Marri Laxma Reddy, Narsimha Reddy, Trishul Reddy, Ramaswamy, Shiva Kumar, Madhavi and three accountants appeared before the I-T officials.
Later speaking to the media, Rajasekhar Reddy said that the I-T officials questioned him about medical and engineering college seat allotments, money and records of assets which they found at his residence during the time of searches.
He also said they were ready to appear before the officials again if required.
Sources said that the officials sought clarifications on the source of money seized from them and as to why they had kept crores of rupees in cash at home without proper documents. The officials also asked them about the bank transactions between the educational institutions and several employees of those institutions, the sources added.
Rajasekhar Reddy’s father Laxma Reddy stated that officials inquired about his role in the colleges and institutions. He said that he had clarified to the officials that he had nothing to do with the finances of the MLR Institute of Technology (MLRIT) as he was only taking care of students’ sports and fitness.
Meanwhile, Narsimha Reddy and Trishul Reddy said that the officials have not probed them about any financial matters. “But we have been asked to appear before the I-T officials again on Wednesday,” they added.
Sources also said that the I-T officials grilled the accountants about the financial transactions that took place in the last four years. The I-T officials suspect that the money from educational institutions is being diverted to real estate and other business establishments.
The I-T department is also probing as to how many students joined the institute under the management and convenor’s quotas. The officials also tried to find out how much money was paid as donations for management quota seats which is suspected to be the unaccounted cash they had seized.The officials also questioned minister’s son Bhadra Reddy and son-in-law Rajasekhar Reddy regarding the source of seized money from their residences and also about transactions of Malla Reddy Educational Trust.
The I-T department officials also issued notices to 10 others who are employees of Mallareddy Educational Institutions. Meanwhile, Malla Reddy’s auditor is due to appear before the I-T officials on Tuesday.