Sleuths of the income tax (I-T) department on Tuesday conducted searches in the premises of real estate developer Vamsiram Builders and its promoters in Hyderabad and Vijayawada. The officials were checking records following complaints of alleged tax evasion.
The officials raided the residence of key promoter B Subba Reddy and other promoters. Former Andhra Pradesh minister Devineni Rajasekhar’s son Devineni Avinash, who is YSR Congress Party functionary is also under the scanner. Devineni Avinash’s name has cropped up in financial transactions related to a development project.
The I-T benami prohibition unit earlier attached Avinash’s prime property worth crores of rupees on Road No. 2, Banjara Hills, under Benami Transactions (Prohibitions) Act, 1988. Six benami persons donated the property to Avinash during his marriage, it was said.
It was also alleged that Devineni Rajasekhar, when he was alive, got the property registered in the name of those six persons, who mostly belonged to poor families. After Rajasekhar’s death, these benami persons had transferred the property to Avinash as a gift deed.
The land was later given to city-based Vamsiram Builders to construct residential and commercial apartments in Banjara Hills, the project of which was running into hundreds of crores of rupees.
Based on specific information, the I-T prohibition unit had issued show-cause notices and attached the properties under the 1988 Act after recording the statements of benamis. However, Avinash had approached Telangana high court against the proceedings. In the current case, the IT officials are looking into the financial transactions of the Vamsiram Builders.
The company’s key promoter B Subba Reddy is associated with Sri Aditya-Vamsiram Homes LLP, Green Olive Homes LLP, Sohini Developers, Vamsiram ARR Ventures, Vamsiram Estates, Vamsiram Purdhvi Builders, Vamsiram Projects, SJS Farm lands, BSR Builders, Vamsiram Developers, Vamsiram Builders and other companies.
