CM Ramesh’s Companies Diverted Rs 800 Crore: IT Dept

Amaravati: The Income Tax officials found several suspicious and dubious transactions in the companies owned by Andhra Pradesh Chief Minister Nara Chandrababu Naidu's close associate and Telugu Desam Party (TDP) Rajya Sabha member CM Ramesh. According to the IT department's report, substantial proof showing dubious transactions in the name of sub-contracts have been found in CM Ramesh's companies. In principle, the officials zeroed in on an estimation of Rs 800 crore worth dubious transactions by Rithwik Projects Private Limited.

Of the Rs 800 crore, clear evidence was found for the diversion of Rs 100 crore while the remaining Rs 700 crore were believed to be dubious.

The IT sleuths suspect that CM Ramesh's company has diverted the Rs 700 crore to a petroleum product manufacturing company owned by a young TDP leader. From CM Ramesh's Anjanadri Power, Kadapa Power, Natayanadri Green Enery, Kadiri Green Power and Rithwik Green Power companies, a spate of transactions were made which have now come under the scanner.

On the other side, around Rs 100 crore were diverted to fake companies that have no presence in their registered addresses. The IT report indicates dubious transactions worth Rs 25 crore while Rs 74 crore were transferred to non-existent companies. In the last six years, EDCO India Pvt Ltd was paid Rs 12 crore in various transactions by CM Ramesh's companies. Of the four registered addresses provided by EDCO, none of them had its presence.

In its report, the IT dept noted that EDCO was used a means to divert funds after discovering its transactions through Rithwik Properties' Accountant Sai Baba had no answers when questioned about the Rs 33 crore worth suspicious transactions. Of them, Rs 25 crore was shown as been used for purchases while Rs 23 crore of it was returned in the form of cash.

Also, the company authorities could not substantiate with any proof the Rs 12.24 crore worth transactions between Rithwik Properties and steel suppliers. Bills were not produced for the Rs 7.98 crore commission received against the 2% commission from the steel suppliers. A Rs 2.97 crore loan was taken by an employee on Rithwik Properties' behalf and the money used for personal needs.

The IT officials have also expressed suspicion over the Rs 25 crore payments made to steel suppliers Oak Steels and BSK Corp..From CM Ramesh's residence, Rs 13 lakh worth cash and $3,000 were recovered during the IT raids.

Asked about the national media reports on large-scale dubious transactions in his companies, the TDP MP said the media should enquire with the IT department.

TDP Defections Have CM Ramesh Link

During the IT raids, it was also found that CM Ramesh was involved in the financial transactions made to the defected MLAs who shifted to the TDP from the YSR Congress party. Through his companies, CM Ramesh arranged for a part of the money given to the MLAs at the time of defection, it is reported.

Rumours around financial transactions between CM Ramesh's companies and recently murdered TDP MLA Kidari Sarveswara Rao are also in the air. When Kidari shifted loyalties to the TDP, Rs 7 crore was deposited in the bank account of a close associate of a TDP MLA from Vizag. The TDP MLA, it is learnt, carries out mining and quarry businesses ion Vizianagaram district. The money was deposited in the associate's account to avoid auditing-related troubles for the MLA.

It is yet to be found out whether the money given to Kidari was financed by CM Ramesh's companies or other TDP leaders. Meanwhile, the TDP leaders, who were trying to impress Chandrababu with the defections of MLAs, are in a state of worry with the IT raids, it is said.

Also Read: Chandrababu Would Have Been Hanged: YSRCP MLA Ravindranath Reddy