IT raid on Ramky group detects artificial loss of Rs 1,200 crore

Hyderabad: The Income-Tax department searches on properties owned by YSRCP Rajya Sabha member Alla Ayodhya Rami Reddy and his family-owned Ramky Group in the City led to detection of artificial loss of approximately Rs 1,200 crore.

According to the department, the group had incorrectly claimed bad debts of Rs 288 crore on account of related party transactions, which was set off against profits earned. A department release said further questioning by officials revealed that the entities and their associates admitted having an unaccounted income of Rs 300 crore and have also agreed to pay tax.

During the searches, incriminating documents relating to the artificial and incorrect claim were found. Unaccounted cash transactions with the associates of the group were also detected during the search. Apart from documents, several loose sheets were seized, indicating the group's involvement in unaccounted transactions. The group was found to have sold its majority stake to a non-resident entity based in Singapore during 2018-19 Financial year and had earned huge capital gains.

The group had subsequently devised various schemes by entering into a series of share purchase, sale, non-arm's length valued subscription and subsequent bonus issuance, creating a loss which was set off against the capital gains earned. It was also found that the loss was artificially created to set off the respective capital gains. Further investigations are in progress, the release said.

The department started searches on Tuesday. On Friday it was revealed that the group was involved in a fraud.