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Reddy's Rs 215 Cr Parked In OffshoreTax Havens

Bangalore, July 29: Most of the Bellary ore money have been parked by the Reddy brothers in offshore tax havens, reports The Times of India. The final report on illegal mining illustrates that Karnatakas powerful Bellary
reddy s rs 215 cr parked in offshoretax havens -...
PTI 29 Jul 2011, 12:16:59 PM IST

Bangalore, July 29: Most of the Bellary ore money have been parked by the Reddy brothers in offshore tax havens, reports The Times of India. 

The final report on illegal mining illustrates that Karnatakas powerful Bellary ministers,whose transactions exceed way beyond what is declared to the state authorities,are involved in money laundering and tax evasion to smuggle out their croreswhat former Jharkhand CM Madhu Koda was up to some time ago.

The Lokayukta report has assessed that a whopping Rs 215.12 crore has been parked by Reddy brothers and their confidant B Sriramulu in tax havens and recommended a thorough probe by IT department to ascertain the exact loss and bring the money back.Officials led by UV Singh unearthed vital evidence that suggests the Reddys diverted funds to overseas destinations illegally from their Obulapuram Mining Company (OMC).

The report said OMC exported about 20 consignments to GLA Trading International in Singapore,though the major iron ore trade destination is China.GLA was established on November 30,2007,with G Janardhan Reddy as a director.Eith a share capital of $1,it has offices in tax havens of Singapore,Dubai and British Virgin Islands.

A comparative statement of various iron-ore exporters for similar grade of iron ore shows that OMC exported to its Singapore entity for a much lower price.The export consignments were highly undervaluedabout 35% of iron ores then international pricewhich amounts to smuggling,the report said.

For a similar grade of iron ore export from Visakhapatnam to GLA in Singapore in Feb-March 2007,OMC under-invoiced at $94 per tonne;GLA sold it to mineral giant Maco Commercial at $152 per tonnea $58 per tonne difference.

The Lokayukta has recommended Reddy brothers removal from cabinet and initiatiation of criminal proceedings against them.

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