Introduction
The Income Tax department has taken a significant step by issuing a show-cause notice to N. Chandrababu Naidu, the former Chief Minister and Telugu Desam supremo. The notice is in response to allegations of undisclosed income amounting to Rs 118 crore, which is believed to have been received by Naidu as kickbacks from infrastructure firms. This article delves into the details of the notice and the events that led up to this development.
The Show-Cause Notice
The show-cause notice, a crucial document in this unfolding controversy, serves as a formal request for Naidu to explain why tax proceedings should not be initiated against him. It points to the staggering sum of Rs 118 crore as undisclosed income, a claim that has captured public attention.
Unearthing Bogus Sub-Contracts
The notice asserts that the Income Tax department possesses compelling evidence of unaccounted income generated through what it describes as "bogus sub-contracts" that were allegedly awarded to Naidu. This revelation forms the core of the investigation.
The Genesis of the Inquiry
The saga began with a search operation carried out on the premises of Manoj Vasudev Pardasany, a key figure involved in the tendering process in Andhra Pradesh since December 2017. Pardasany's connection with Shapoorji Pallonji and Company Private Limited triggered the scrutiny. Notably, the tax authorities extended their search to include the premises of Pardasany's associates in November 2019, deepening the complexity of the case.
The Admission and Incriminating Evidence
Perhaps the most damning piece of information is Pardasany's alleged admission to orchestrating fictitious contracts and work orders. The objective, it is claimed, was to siphon funds for Shapoorji Pallonji and Company Private Limited through a network of fake sub-contractor companies. During the search operations, the investigators unearthed a trove of incriminating evidence, including messages, chats, and Excel sheets. These documents purportedly lay bare the mechanics of how funds were siphoned off and how cash found its way to major infrastructure firms, with Naidu in the spotlight.
The Statements and Allegations
Statements from Pardasany, recorded on November 1 and 5, 2019, are highlighted in the notice. They suggest that funds were diverted from projects allocated to Shapoorji Pallonji and Company Private Limited by the Andhra Pradesh government without corresponding actual work. Additionally, the notice contends that L&T also engaged in similar activities, siphoning off funds and channeling them for the benefit of Naidu, using entities like Phonenix Infra and Pour Trading.
The Bottom Line
The Income Tax department has calculated the total undisclosed income at an astounding Rs 118.98 crore for the financial year 2020-21. This sum, it claims, was allegedly siphoned off by Pardasany through various sub-contractor firms for the ultimate benefit of Naidu. The show-cause notice, therefore, seeks an explanation from Naidu regarding why this substantial amount should not be treated as undisclosed income.
In conclusion, this development marks a significant chapter in the ongoing investigation, potentially holding profound implications for N. Chandrababu Naidu and the political landscape in Andhra Pradesh.
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