Jagan Reddy feels the I-T heat

Ever since Jagan, the former MP from Kadapa, became an outcaste at 10 Janpath, the Income Tax Department and the Enforcement Directorate have come snapping at his heels. According to unconfirmed reports the IT and ED department examined the records of several companies owned by Jagan on Thursday, which include a TV channel.

However the channel management denied these reports. Jagan, son of the late S Rajasekhara Reddy, paid about Rs 84 crore to the Income Tax department as advance tax recently and his projected income was put at Rs 500

crores by the end of financial year. Jagan had pegged his income in 2003- 04 financial year at about Rs 11 lakhs, said sources. Jagan’s critics say he has allegedly sold shares of his companies at extraordinary prices; the shares of some companies were purchased at prices 10 to 60 times higher than the listed one. It is also alleged that money from countries like France and Malaysia has been funneled into Jagan’s companies.

The Income Tax authorities and the Enforcement Directorate are going to examine whether the transaction of shares was above board and whether there has been any violation of IT rules; also whether Jagan had submitted all the information about his companies to the Registrar of Companies. Jagan owns 100 per cent shares in Classic Realters, 67 per cent in Janani Pvt. Ltd, 99 per cent shares in Marvel Infra, 99 per cent in Silicon Infra, 69 per cent in Jagathi Publications, 37 per cent in Sandur Power and

Industries, 51 per cent in Indira TV, 86 per cent in Saraswathi Power and Industries and 37 per cent in Pulivendula Polymers. The Ramky group had recently bought about 55,000 shares in the Jagathi Publications; 13 more companies have also bought sizable number of shares in these companies.

The Ramky Group was recently awarded a port project whereas Matrix was awarded three Special Economic Zones in the state.