New Delhi: The Income Tax department has bust a racket of infrastructure companies in Andhra Pradesh and Telangana generating and laundering unaccounted wealth through non-existent sub-contractors. News agency PTI said premises of a former private secretary to former Andhra Pradesh Chief Minister N Chandrababu Naidu was searched. A field official of the department, who spoke on condition of anonymity, confirmed that Naidu’s associate was covered in the search operation. “Investigations led to busting of a major racket of cash generation through bogus sub-contractors, over-invoicing and bogus billing. Foreign direct investment worth several crores in the associates of one of the infrastructure companies is suspected to be tax evaded money in disguise.

Source: Mint February 14, 2020 14:26 UTC