IT Raids on Megha MD: Not A Routine Affair?

Our readers are aware that Megha Engineering Infrastructure Limited (MEIL) is the frontrunner for bagging Polavaram Remaining Dam Works and Hydel Project Contract in Reverse Tendering. MEIL is also undertaking several projects in Telangana. As we speak, IT Raids are happening on the residences and offices belonging to MEIL MD, PV Krishna Reddy.

The Investigation Wing of Income Tax Department is conducting the raids on the allegations they did not show the profits in the recent projects in their books. Income Tax Department is tight-lipped about the raids but MEIL is saying that they are routine raids and there should be no issues.

“IT department raids us every two years for the past 20 years. This is a routine affair and we will come out clean,” MEIL says. However, the timing of the raids is debatable as MEIL quoted 750 Crore less in Polavaram Reverse Tendering. These raids come at a time when there are rumors that the Center may disapprove of the tenders and take up Polavaram construction by itself.

According to a recent survey, MEIL’s P Pitchi Reddy with a net worth of 13,400 Crore and MD, PV Krishna Reddy with a net worth of 12,900 Crore are among Top 99 Richest Indians. Pitchi Reddy and Krishna Reddy have secured 57th and 63rd spots on the list.