Jaganmohan Reddy Head of the Y.S.Rajasekhar Reddy A Regional Party, Andhra Pradesh, India.
Jaganmohan Reddy may have been now arrested by the CBI, but he was nailed comprehensively for the first time by the income tax department at the end of 2010 in its tax assessment order. This order seems to have been the starting point of CBI's investigations.
Examining the returns filed by Jagati Publications that publishes Sakshi newspaper, the tax department realised that something was not squaring up. Precisely what caught the attention of the tax officials was that 90% of the equity in the company was held by Jagan and his close associates but they had only contributed 20% of the share capital. On the other hand, a few outside shareholders held 10% of the equity although they had contributed 80% of the share capital. This anomaly happened, the tax men figured out, because Jagan had been allotted shares at the par value whereas the outside shareholders had been allotted equity at a premium of Rs 350 per share.
The tax officials also discovered that there were a few shareholding companies - which were very small and unknown - had no credentials. Some of them could not be traced by the tax department when it issued notices to them, others were all located at the same address, yet other companies even had common directors.Why had these companies and outside shareholders invested in Jagati Publications? The tax men had no immediate answers and they were further flummoxed when they realized that there was no public listing of Jagati Publications. So the investors could not hope for any appreciation in the shares of the company in the market which would enable them to make money and recover the investments they had made.
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Examining the returns filed by Jagati Publications that publishes Sakshi newspaper, the tax department realised that something was not squaring up. Precisely what caught the attention of the tax officials was that 90% of the equity in the company was held by Jagan and his close associates but they had only contributed 20% of the share capital. On the other hand, a few outside shareholders held 10% of the equity although they had contributed 80% of the share capital. This anomaly happened, the tax men figured out, because Jagan had been allotted shares at the par value whereas the outside shareholders had been allotted equity at a premium of Rs 350 per share.
The tax officials also discovered that there were a few shareholding companies - which were very small and unknown - had no credentials. Some of them could not be traced by the tax department when it issued notices to them, others were all located at the same address, yet other companies even had common directors.Why had these companies and outside shareholders invested in Jagati Publications? The tax men had no immediate answers and they were further flummoxed when they realized that there was no public listing of Jagati Publications. So the investors could not hope for any appreciation in the shares of the company in the market which would enable them to make money and recover the investments they had made.
Gsv Pics |Gsv Vids | Techno zip| Divine Thought | For The Sake of Us | Gsv Films | DMCA POLICY
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