Now Reading: Income Tax Department joins Rs 3,500 crore AP liquor scam probe
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Income Tax Department joins Rs 3,500 crore AP liquor scam probe
The Income Tax Department has joined the investigation into the alleged Rs 3,500 crore liquor scam during the YSR Congress Party government in Andhra Pradesh, meeting SIT and ED officials in Hyderabad…
The Income Tax Department has joined the investigation into the alleged Rs 3,500 crore liquor scam during the YSR Congress Party government in Andhra Pradesh, meeting SIT and ED officials in Hyderabad two days ago to gather details of the money trail. Investigators have alleged that bribes from distilleries were siphoned through hundreds of shell companies and fake invoices, with large sums routed to Dubai via hawala channels and invested in real estate.
Raj Kasireddy, said to have acted on behalf of the then government leadership, and his associate Thookela Eshwar Kiran Kumar Reddy are among those under scrutiny for setting up shell companies. The I-T Department is now examining whether bribe money was converted into legitimate funds, tax evasion patterns and benami transactions, with further action expected based on the collected evidence.
Indian Opinion Analysis
The I-T Department's entry adds a tax-evasion angle to a probe that has already netted allegations of a Rs 3,500 crore kickback scheme. Under the Income Tax Act, 1961, the department can reassess income up to six years old if it finds undisclosed money, often a faster route to penalties than the ED's anti-money-laundering track. The real enforcement heft lies in the Black Money Act and the Benami Transactions Act, which let the tax department seize assets without waiting for a criminal conviction. Hundreds of shell companies have been flagged, the next step will likely be seizure notices against properties bought with the routed funds. The I-T Department's Hyderabad wing is expected to issue the first such notices within weeks.
Source: greatandhra.com
This brief was synthesised by AI from the source linked above.
