BSY 'mining' for trouble in Karnataka


Yeddyurappa,Reddy bros
Bangalore, Dec 27: Karnataka Chief Minister, BS Yeddyurappa's woes never seem to subside. After the verbal lash of the Karnataka Governor, now its the Income Tax officials that seem to be giving the Chief Minister sleepless nights.

The IT officials have found irregularities and evasions to the tune of Rs 86 crore by the Obulapuram Mining Company (OMC) run by the Reddy brothers along with the State health minister B Sriramulu.

Already facing the music for Yeddyurappa's land scams, the news will bring the BJP major embarrassment especially in the wake of the BJP in the Center calling for an Anti-Corruption Rally against the UPA government. The CBI is investigating illegal mining transactions of the Reddy brothers in Andhra Pradesh, were a chunk of the mines exist.

According to internal reports of the IT department, the OMC evaded the govt of Rs 86,42,88,802 during the period 2007-08. Documents available with the Times Of India reveal that the OMC was engaged in an MoU with Singapore-based GLA Trading International to camouflage the company's income quelling.

GLATI , a one-dollar company is under the ownership of Janardhana Reddy's wife Gali Laxmi Aruna. With offices in Singapore, Dubai and the British Virgin Islands, which is a virtual 'tax haven' for defaulters.

"OMC's transactions through the MoU with GLATI are convoluted and devised to evade tax payment in India," an assessing IT officer says in the report.

The dubious transactions were revealed in a study of the shipping bills of other iron ore exporting companies. The report also exposed the fact that the OMC came into an agreement with GLATI to evade tax payment in India.

OneIndia News

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