The department recorded statements to prime facie show that unaccounted income generated through bogus sub-contracts was given back to Naidu.
TDP chief N Chandrababu Naidu. (File photo/Supplied)
The Income Tax (I-T) department has issued a show-cause notice to Telugu Desam Party (TDP) chief and former Andhra Pradesh chief minister N Chandrababu Naidu, asking why an amount of ₹118 crore, allegedly received by him as kickbacks from some infrastructure companies, should not be treated as undisclosed income.
It asked him why it should not be processed as per law. The YSRCP has turned the notice into ammo questioning Naidu’s silence over the issue. The IT department’s notice to Naidu has been made public at a time TDP was celebrating its leader Nara Lokesh’s milestone with his Yuva Galam padayatra completing 200 days.
The notice was issued by the Central Circle of the I-T department in Hyderabad on 4 August 2023, after rejecting Naidu’s objections that the tax proceedings against him could not have been initiated by the Central Circle before the jurisdictional assessing officer undertook the exercise of reassessment of his income for the impugned financial years.
In the notice, the I-T department said that “once the case is notified to the Central Circle, immediately to commence the proceedings, notice under Section 153C was validly issued and the proceedings are in progress.”
The department has recorded statements and seized materials to prime facie show that unaccounted income generated through bogus sub-contracts was given back to Naidu.
Section 153C of the I-T Act allows the revenue department to proceed against a party other than the person who has been searched if certain incriminating materials are found against that party.
The kickback issue came to light during an inspection at the residence of Manoj Vasudev Parthasarathy, representative of Sapoorji Pallonji Company. He also admitted to siphoning off cash through bogus contractors and work orders.
Sapoorji Pallonji and other companies received donations from Naidu through sub-contracts. It was found that the money was allegedly diverted through a sub-contract firm Phoenix Infra and Power Trading.
Parthasarathy was contacted by Naidu’s PA Srinivas in 2016. It was through Srinivas that Naidu received donations from the sub-contracting companies.
Former Minister and YSRCP leader Perni Nani on Friday sought to know why former Chief Minister N Chandrababu Naidu was maintaining silence on the I-T department notice to him.
Addressing a press conference, he said the corrupt deeds of Naidu had been exposed. He added that the I-T department exposed the secrets of Naidu who allegedly took Rs.118 crore from sub-contracts of the infra companies.
He also questioned the silence of a couple of vernacular newspapers and news channels over the I-T notices. “It is the high time that Naidu should respond notices,” he said.
Naidu’s personal assistant Srinivas played a crucial role in taking money, he said, adding that the entire corruption was carried out in the name of developing Amaravati as a capital of Andhra Pradesh.
“When Chief Minister YS Jagan Mohan Reddy visits New Delhi, Naidu spreads false propaganda against him and same Naidu bowed before senior BJP leaders in New Delhi recently during an interaction with them,” he alleged.
Referring to the criticism made by Naidu’s son Nara Lokesh against YSRCP MLC Potula Sunitha, Nani asked Lokesh to first respond to allegations of corruption against his father. “Does Lokesh have the guts to file a lawsuit against the English daily that published the article related to the notice issued to Naidu?” he asked.
He found fault with Naidu for again making false promises to people. “How can Naidu implement new promises being given to people when he failed to fulfil aspirations of people while he was the Chief Minister of Andhra Pradesh after bifurcation?” Nani asked.
Stating that Naidu can stoop down to any level for the sake of getting power, Nani cautioned the people from the false promises made by Naidu.
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