The IT officials recently conducted search operations on realty developer companies – Vasavi Group and Sumadhura Group, in Hyderabad. These raids were carried out simultaneously on around 20 offices in Bengaluru and Hyderabad. It may be noted that the raids were conducted just a few days after Indian Prime Minister Narendra Modi pledged to end corruption in the country.
Why is Vasavi a target?
Vasavi Group made its mark in the construction sector after the formation of Telangana State. Erram Vijay Kumar, MD of the company, has taken up huge projects with well-planned plans. The number of projects taken up by this organisation has increased by obtaining investments from relatives and inducting new partners in various projects. Hence, around 20 projects are being executed simultaneously in Hyderabad alone, with about 20,000 flats.
The list of newly launched projects includes Hinduja’s IDL Bhoomi in Kukatpally and Series Factory in LB Nagar. While the IDL land is for industrial purposes, the State government has granted permission to build residential complexes on it. There are reports that a Minister has a role in it. Moreover, it is learnt that the IT department has conducted searches due to discrepancies in income tax returns of big projects in many areas. However, the officials are yet to reveal any further details in this regard.
Why on Sumadhura?
Bengaluru-based Sumadhura Company has ventured into Hyderabad market in association with Vasavi Group. They executed the first project known as the Acropolis project at Nanakramguda. Later, the Sumadhura Group launched its own construction project in Kondapur. The company joined hands with the Vasavi Group again and launched the Olympus skyscraper project in Nanakramguda. The company conducted pre-launch sales in Shamshabad before obtaining the RERA approval. However, sources in the construction sector revealed that the IT raids were conducted on Sumadhura Group due to the latter’s business transactions with the Vasavi Group.
