I-T officials file suit against Telangana MLA for tax evasion of around Rs 500 cr

The Income Tax department launched prosecution in court against a Telangana MLA on Thursday, for allegedly amassing an undisclosed income worth Rs 500 crore. 

Alleging that it was a case of tax evasion, I-T officials initiated action against TRS MLA S Rajender Reddy, booking him under sections 276 (1) and 277 of the I-T Act, which deal with evading taxes and falsifying statements. 

Rajender Reddy represents the Narayanpet Assembly constituency and was elected on a TDP ticket. He was one of the defectors who switched to the ruling TRS last year. 

Reddy is also the chairman of the Navodaya Educational Trust, which runs medical, dental and engineering colleges. 

According to the affidavit filed with the EC ahead of the 2014 elections, he declared assets worth Rs 29 crore. However, I-T officials have found that he has more assets than he declared, and they were disproportionate to his income.

According to reports, the latest move came after officials in Bengaluru carried out searches against Reddy and his trust in December 2015.

At the time, it was reported that around Rs 18 crore in cash was seized, besides other documents, which led to the latest revelations.
 
When PTI contacted Rajender Reddy, he said it was a 2015 case and that the usual process of the Income Tax department was on.

"Why is it appearing now? I could not understand. This is 2015 case... Now, first step, after investigation, they have sent for assessment now. This assessment, checking after seeking documents, it will take up till December, 2017. Then appeal is there. I have to go for appeal if it is not in our favour. If appeal is also not in our favour, then we have to go to tribunal. After tribunal, if we are not satisfied there, then High Court. This is how the process will go on." (sic) he told PTI.

He also went on to add that he would exercise all his options.