A real estate firm linked to an MP of the ruling TRS in Telangana has admitted to the IT Department of having over Rs 60 crore as undisclosed income after multiple raids were conducted against it in September, officials said.
The firm, M/s Raghava Constructions, is promoted by MP P. Srinivasa Reddy, and his family members are partners in the company, they said.
Reddy was elected to the Lok Sabha in the 2014 elections on a YSR Congress Party ticket, but later switched over to the TRS.
The IT Department had launched searches at 16 premises of the firm and its executives in Hyderabad, Khammam, Guntur, Vijayawada, Ongole and Kadapa on September 18. The IT Department raids lasted four days.
The officials said the IT Department had found tax evasion by the firm on at least three counts by allegedly processing "bogus sale bills" and letting of "subcontracts to purported fictitious accounts".
Reddy, who represents Khammam in the Lok Sabha, however, denied any wrongdoing.
"The IT Department verification process in the case is still ongoing... Rs 60 crore is not the correct figure. The firm, Raghava Constructions, is a maximum tax-paying company and last year, it paid 14.5 per cent tax on its income and before this, it paid 12 per cent income tax. The IT formalities are not completed and I cannot say much as of now as I am in the campaign trail in the state," Reddy told PTI.
Polls to the 119-member Telangana Assembly will be held on December 7.
The officials said the IT Department, during proceedings in the case, recorded the statement of Prasad Reddy, managing partner of the real estate firm, who admitted undisclosed income to the tune of Rs 60.35 crore.
"The undisclosed income detected in this case is for various assessment years and the firm has assured it will soon pay the due tax," a senior IT Department official said.
The firm, the IT Department officials said, had also executed civil contract works for the state government's schemes like 'Mission Kakatiya' and 'Mission Bhagiratha' that aims to better irrigation facilities and drinking water supply in Telangana.