January 21, 2017
106 Crores In Cash, 127 Kilo Grams Gold Seized By I-T From Tamil Nadu Contractors
The Income Tax department has seized at least Rs 106 crore in cash, including Rs 10 crore in new currency, and gold bars weighing 127 kg in searches at multiple locations in the city to check tax evasion post demonetization.
This is the largest seizure of new currency notes after the old Rs 500 and Rs 1,000 notes were scrapped on November 8.
The I-T operation had been launched on Thursday here.
Officials said Shekhar Reddy, a contractor working with the state government, has claimed the entire money and the gold as his own and is being questioned.
“127 kg gold in 1 kg bars and Rs 96 crore in old currency and Rs 10 crore in Rs 2,000 notes have been seized by the sleuths after the operation,” top I-T department officials said, adding “this is an unprecedented amount that the tax department has seized in recent times”.
Shekhar Reddy is said to be connected to several bigwigs. Sources said that Shekhar Reddy was being grilled by the sleuths. A large amount of cash was seized from his premises in T Nagar. Shekhar Reddy is said to have facilitated the darshan of the then interim chief minister O Panneerselvam at the Balaji Temple in Tirupati after J Jayalalithaa was freed from the Karnataka prison last year.
The department carried out the searches based on intelligence inputs about the activities of Reddy and few others for the last few days.
Officials said the agency was investigating how the new notes in such a large quantity were stashed by the individual. The bundles of the new Rs 2,000 had no banking slips on them.
They said the I-T teams had launched operations on at least eight locations of a “syndicate” involved in currency conversion.
The officials said a number of documents related to financial transactions, entries of gold sale and records of sale/purchase have also been seized by the tax sleuths.
At least three people of the alleged syndicate are being questioned while few others are under the radar, they said.
“He (Reddy) is a contractor working with the state government. He is claiming the entire cash and gold to be his own. Further probe is on,” they said.
The I-T department, they said, will share the case details with the Enforcement Directorate and CBI for further probe into money laundering and corruption angles.
Some bank officials are also under the scanner of the taxman.