Even as the Special Investigation Team (SIT) and the Enforcement Directorate (ED) are probing the alleged Rs 3,500 crore liquor scam that took place during the YSR Congress Party (YSRCP) government in Andhra Pradesh, the Income Tax Department has now stepped into the case.
The SIT and ED investigations have so far indicated that money allegedly siphoned off in the scam was routed to several countries, including Dubai, through shell companies and a complex network of layered transactions.
The I-T Department has now begun examining the source and movement of the funds. As part of the exercise, Income Tax officials reportedly met SIT and ED officials in Hyderabad two days ago and obtained details relating to the alleged money trail.
The officials sought information on the companies and bank accounts through which the money was allegedly routed, how far the funds travelled and how they were subsequently transferred abroad or moved into benami entities through additional layers of transactions.
Details of the accused, shell companies, their bank accounts and other individuals allegedly linked to the scam were also reportedly collected. The Income Tax Department is expected to initiate further action based on the information gathered.
According to the SIT and ED investigations, the alleged YSRCP-linked network collected bribes estimated at around Rs 3,500 crore in connection with the liquor business. The money was allegedly diverted through multiple channels.
Investigators reportedly identified hundreds of shell companies and large-scale use of fake invoices. They also found indications that substantial amounts were invested in the real estate sector.
Raj Kasireddy, who allegedly acted on behalf of the then government leadership in the scam, is reported to have set up shell companies along with his associate Thookela Eshwar Kiran Kumar Reddy. Investigators have reportedly found that hundreds of crores of rupees were transferred to Dubai through hawala channels, where companies were also allegedly established.
The Income Tax Department is now examining these transactions in detail. Officials are reportedly looking into several aspects, including the alleged conversion of bribe money collected from liquor distilleries and supply companies into legitimate funds, possible tax evasion and diversion of money through fake invoices.
Officials are also gathering details about alleged benami transactions and shell companies as part of the wider investigation.
