Reddys yet to reply on tax evasion

In a letter to Chief Minister B S Yeddyurappa recently, the Governor H R Bhardwaj had sought a detailed report on the mining activities of the three Bellary ministers - G Janardhana Reddy, his brother G Karunakara Reddy and their associate B Sriramulu, including reports of tax evasion related to the OMC.

After analysing information, case records and documents, the I-T Department had come to the conclusion that OMC had evaded Rs 86.42 crore during 2007-08.

According to an internal report of the I-T department, OMC had entered into a MoU with one-dollar company GLA Trading International of Singapore to camouflage the company’s income suppression.Yeddyurappa, in his reply to the Governor had defended the mining activities by the Bellary ministers stating that it was their individual business and had nothing to do with the government.He had stated that a copy of the Governor’s letter had been forwarded to the ministers.