MLA's business sees Rs 350 crore turnover

MLA's business sees Rs 350 crore turnover

Within three years of its inception, Eagle Traders and Logistics, where Nagendra is a partner, saw a whopping turnover of Rs 350 crore on account of trading in iron ore. A preliminary investigation showed that the iron ore traded was not legally sourced.
According to the Lokayukta, Eagle is a major trader in the business of illicit iron ore. “It has actively colluded with the mining group in procuring illicit iron ore from various mines controlled by the ‘group’ and other places and supplying the illicit material to various exporters like SB Logistics and Dream Logistics Ltd,” says the Lokayukta.

Significant transactions
Bank statements of Eagle show significant transactions. The statement of account shows a total credit of Rs 649 crore and debit of Rs 649 crore between September 2007 and February 2011. The bank account also shows a large number of suspicious cash withdrawals in denominations of Rs nine lakh in the name of persons who are suspected to be benami or fake.

Following investigation by the Income Tax department, it was found that Eagle attempted to hide the real source of purchase of iron ore. The Lokayukta has found that 55 companies have transferred large sums of money to Eagle’s account, and further investigation was needed.

The Lokayukta has recommended action against Nagendra. A first time MLA, he has a place in the charmed circle of the Reddys. Nagendra is himself a mine owner, and entered politics because of his close proximity to Cabinet Minister B Sriramulu, his relative.

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