TN Sand Mining Baron Paid Rs 400 Crores To Officials, Reports IT DeptMay 08, 2017 16:36
According to the Income Tax Department reports to the State Government, the Tamil Nadu sand mining baron, J Sekhar Reddy paid the State Ministers and Bureaucrats around Rs 400 crores.
A leading news channel reported that, the decision is now with the state government, to order an investigation. Earlier, allegations were made against Sekhar Reddy of money laundering by the Enforcement Directorate, and was sent to judicial custody till March 28. A huge amount of cash was recovered in December, by the IT department, from properties belonging to Reddy. A Rs 142 crore cash, which also included the new Rs 2000-rupee note, adding upto Rs 34 crore were seized from Reddy. However, he was arrested for tax evasion by the CBI, a few days later was given bail, after spending 87 days in jail. He was rearrested just three days later.
The sand mining baron, allegedly has business links with the son of Ex TN Chief Secretary P. Rama Mohana Rao’s son, Vikram Rao. After the IT department, raided vikram’s residence and office in Chennai, he was removed from his post in December. Following the Prevention of Money Laundering Act (PMLA), the ED on Friday provisionally attached properties worth Rs 33.74 crore of Reddy and his associates. Furthermore, the ED on examination under PMLA, said that Reddy had stated that the cash seized by the IT department belongs to his SRS Mining company. Reddy further admitted the cash was unaccountable.
The sources in the IT department were quoted as saying by a leading news channel that, the huge amount paid to those in Reddy’s payroll might be the share of the money that he gained during the sand mining scam and the Public Works Department (PWD) contracts with political patronage.
Earlier, after the State Health Minister, Vijayabasker was raided, the IT department, has already recovered incriminating documents. The money was used to purchase votes from people in the RK Nagar constituency, following which the bypolls were canceled by the Election Commission. The Deputy General Secretary of AIADMK, and V.K. Sasikala’s nephew, TTV Dinakaran was sidelined for the then bypoll. This came as a huge embarrassment to the E Palaniswamy government in Tamil Nadu.
During his arrest, the photographs of Reddy at the Tirumala Temple, in company of the former CM O Paneerselvam had emerged. The OPS however claimed that Reddy had received OPS at the temple, since Reddy was a board member in the temple.