CM Ramesh Rithwik Project Scam Details Out, IT Raids Continue

Hyderabad,Kadapa,Amaravathi: In what could be termed as a major irrigation scam in the state of Andhra Pradesh ,involving Rajya Sabha member and senior TDP Party leader CM Ramesh’s company Rithwik Projects, IT officials have reportedly recovered incriminating financial documents pertaining to the company which was involved in major Irrigation projects in Andhra Pradesh.

IT raids continued overnight at the residences and offices of Rajya Sabha member and TDP leader CM Ramesh in Hyderabad, Amaravathi and Kadapa. Raids were also conducted at Rithwik Projects, a company owned by CM Ramesh in Hyderabad.

The raids started on Friday simultaneously in multiple locations, including his residence at Jubillee Hills in Hyderabad, business premises in Amaravati and Kadapa and also at Rithwik Projects, a company Mr Ramesh owns and an office of a company owned by Mr Ramesh's relative. The firm, Rithwik Projects is reportedly said to have a turnover of close to Rs. 1,000 Crores. According to popular opinion, money to the tune of thousands of Crores of Rupees has been transferred to an unknown person in New Delhi . Also, it is widely that the 2015-16 and 2016-17 financial reports of the company show that the profits doubled in a year and there was major flow of cash as investments into the company and this prompted the IT officials to conduct an enquiry in to the company affairs.

As per popular perception, contracts for several major water irrigation projects in Andhra Pradesh were awarded to Rithwik Projects. Accordingly, the company accounts show that the company received the money equivalent to the project value but no work was done and therefore triggering the IT raids. Documents show that the money received for the Irrigation Sub Contracts was diverted to a person in Delhi and whether the money was laundered to other countries or diverted to other companies is yet to be ascertained by IT officials, it is said.

As part of the raids, the IT officials, it is believed, have found bills to the tune of Rs 1,800 crore & Rs 900 crore given to Rithwik projects and despite taking the money no work was executed by the company. Also, buzz was in the air that the IT Officials were examining transactions of six other companies associated with Rithwik Projects, where money to the tune of hundred crores have been transferred, leading to suspicion that money could have changed hands.

Another aspect that the IT officials were believed to be verifying was that disbursement of moneys for irrigation projects, which are generally transferred either through cheques, online mode or through RTGS transactions. But, in this case, more than hundreds of Crores have reportedly been received in cash.

Meanwhile, IT officials were said to be shocked to find two huge Digital lockers in CM Ramesh’s residence in Jubilee Hills. When the lockers were unlocked using CM Ramesh's fingerprints, one of the lockers contained files pertaining to Andhra Pradesh irrigation Projects allotted to the Company, files and details of old estimates of the projects and other documentation related to the hike in the projects values were reportedly recovered. It was said that the other locker contained Bank account details of three banks belonging to CM Ramesh, Cheque Books, pen drives & IT returns.

CM Ramesh’s brother-in-law Goverdhan Naidu, who is the director of the company & also handles the financial affairs of the company and his brother Rajesh another director were reportedly interrogated by the IT Officials for more than 20 hours.

Reports indicated that the IT officials pulled out financial records pertaining to Rithwik Properties Pvt. Ltd., Rithwik Projects Pvt.Ltd., Rithwik Holdings Pvt. Ltd., Rithwik Green Power Pvt. Ltd., Kadiri Green Pvt. Ltd, Global Earth Minerals Pvt. Ltd., Rithwik Agricultural Farms Pvt. Ltd. and had examined the financial transactions of these companies.

CM Ramesh, who is a Rajya Sabha lawmaker and is also elected to the Public Accounts Committee (PAC), while speaking to the media after his return from Delhi, said that only his clothes were there in the digital lockers and that he had declared an income of Rs. 200 crore in the last four years and that he was a prompt tax payer. He clarified further that his digital lockers contained only clothes and that he will not be cowed down by such attacks by the Modi government.

It may be recollected that a writ petion was filed in the AP High Court in the year 2012 against AP Chief Minister Chandrababu Naidu and his aide, by YSRCP leader and wife of former AP chief minister YS Rajeskhar Reddy- YS Vijayamma, alleging that CM Ramesh’s company Rithwik Projects holds Naidu’s ill-gotten money and how is it that a small sub contracting company with a small turnover of Rs 61 Crore in 2003 could end up making Rs. 488 Crore by 2009. There was also a large scale infusion of foreign capital into the company and all this needed to be thoroughly verified by the IT dept, but the case was not taken up.

According to reports, notices have been issued to CM Ramesh’s wife, brother, brother in law and six other directors of the companies to be present for further enquiry pertaining to the financial transactions of Rithwik Projects.

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