ED, IT raids at Minister Gangula’s home

PNS | Hyderabad

Sleuths of the Income Tax Department and the Enforcement Directorate on  Wednesday conducted joint searches at the offices and residence of owners of granite firms, including Telangana Minister Gangula Kamalakar. Simultaneous searches were on until late in the night at about 20 locations in Hyderabad and Karimnagar at the residence and other premises of the TS Civil Supplies and Backward Classes Welfare Minister and other granite businessmen. As part of the searches, teams of IT and ED officials were reportedly checking records and transactions at the offices of granite industries at Panjagutta, Hyderguda, Somajiguda and other areas in Hyderabad.

The searches were carried out at the Minister’s house in Karimnagar town and at the offices of granite industries owned by his relatives in Mankammatota and Kaman areas.The Minister and his family members are currently on a visit to Dubai.

In their absence, the teams broke open the locks of Gangula’s house and entered it for their searches.The IT and ED officials are believed to have taken the action following allegations of tax evasion and FEMA violations against granite businessmen.

BJP TS unit president Bandi Sanjay previously filed a complaint alleging large-scale irregularities by certain granite traders in their exports. He had adduced evidence along with his complaint, following which ED officials had served notices to 15 granite companies.The current raids are being conducted due to lack of proper information from the granite companies despite the notices.

A case was filed against Minister Kamalakar in 2012 alleging that the exchequer lost Rs 750 crore due to his “illegal” operations. BJP leaders had complained against him again in November last year.

It is alleged that some of the granite companies in Karimnagar and Warangal had exported granite to China on a large scale through Kakinada and Krishnapatnam ports. Many irregularities were allegedly committed, including in waybills and invoices as well as books of accounts relating to granites exported to China. Records of the shipping companies involved in the granites exported were also collected.Subsequently, notices were issued to the errant granite companies.