They claim that the money has come from lawful business.

Businessman Shekar Reddy and his associate deny allegation claim Rs 34 crores came from business
news IT Raids Thursday, December 22, 2016 - 11:19

Following repeated raids by IT officials, businessman Shekar Reddy and his associate Srinivasulu were arrested on Wednesday. However, they deny the allegation leveled against them and claim that the money came through their business.

They were produced before the CBI Special Judge and have been sent to judicial custody till January 3, 2017.

They have already filed bail petitions. In the petitions, they have stated that the new currency of Rs 34 crores seized by the department was the collection money paid for the hiring charges of the sand lorries by various depots which generate Rs 1.5 crores per day.

They also stated that they own 425 lorries and that around 180 of these are hired by various stockists and end consumers of sand. They proclaimed that each lorry gives a revenue of approximately Rs 25,000 to 30,000/- per day as its hiring charges based on its trips round the clock.

The petitioners also added that they are the executive directors of JSR infrastructure and that they have a turnover of more than Rs 125 crores and that they have been paying tax on their income. They claimed, therefore, that there was nothing unusual in finding Rs 34 crores in the hand of a businessman. All the income is being reported and tax is paid. 

They further stated in the petition that they had not indulged in converting the old currency into new currency through brokers nor through any bank officials. The money seized by the Income Tax officials is the lawful business income. The reports in the newspapers and in the media regarding seizure are not true and are incorrect. However, they sought bail stating that they will cooperate with the investigation and not tamper with the witnesses.  

Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.