HYDERABAD: The Income Tax (I-T) Department on Tuesday conducted searches in the residence and offices of Big C Managing Director (MD) Y Sambashiva Rao and his son in both the Telugu states. The raids come in connection with the raids held at the establishments belonging to RS Brothers in the twin cities last week. RS Brothers group and its sister companies ventured into the real estate business last year.
The RS Brothers group of companies own Big C, Sumadhura Vasavi and Lot Mobiles in the two Telugu states. The agency had recently noted a transaction of `360 crore from Big C to Honor Projects. The searches were also held at the residence(s) and offices of Sambashiva Rao’s son Swapna Kumar, who is the Executive Director of Big C.
He is also reportedly one of the directors of Honor Projects, Honor Hospitality, Lot Mobiles and 23 other companies. I-T sources said that the officials seized hard disks and documents about investments into Honor Projects and other companies. Officials suspect that Big C purchased mobile phones from the black market and would sell the same to customers in the open market.