Sleuths of the Income Tax Department on Friday carried out an inspection at the head office of infrastructure company Megha Engineering Infrastructure Limited (MEIL) in Hyderabad.
The company is presently executing the mammoth Kaleshwaram Irrigation Project in Telangana.
While I-T officials did not speak on their visit, MEIL said that it was a 'routine inspection', which happened regularly.
Stating that these were not raids or searches, the company said that I-T officials had been carrying out a routine inspection every two years, and this had been going on for the last 20 years.
"The inspection is limited to only the head office in Hyderabad, not all regional offices. We have 17 regional offices across India. Since we pay advance taxes, the I-T department needs some clarifications; the officials visited our head office today. Not anywhere in regional offices. This is purely a matter of internal assessment," the company said.
MEIL had also executed the Pattiseema scheme, which linked the Godavari and Krishna rivers.
More recently, just last month, the Andhra Pradesh government expressed its wish to award the Polavaram project to MEIL, claiming that it saved Rs 780 crore public money through re-tendering of the project work. MEIL had come up with a proposal quoting a price that was 12.6% lower than the previous contractor, Navayuga Engineering Company Limited.
Established in 1989 by PP Reddy, is the Chairman of the group of companies, while his nephew PV Krishna Reddy is the Managing Director. The duo are known to be close to Telangana Chief Minister K Chandrasekhar Rao.
The company has investments in several states in India and is also active in other countries.