According to reports, Income Tax officials have collected evidence to prove that there was violation of section 269 SS of the Income Tax Act by Margadarsi Financiers run by media baron Ch. Ramoji Rao.
The Income Tax department may levy penalty to the tune of Rs 1,200 crore to 1,400 crore on the company after completing the necessary formalities. Section 269 SS deals with the collection of cash deposits over Rs 20,000 and violations would attract 100 per cent penalty.
According to IT officials, Margadarsi had collected deposits worth Rs 1,400 crore in the last four years. IT officials had summoned the group chairman, Ramoji Rao, on Thursday and had questioned him for more than seven hours on the alleged violations. His statement was recorded on each aspect. Sources said the long interrogation was conducted to ensure that everything including the final statement of Ramoji Rao was recorded, so the company will not be able to change its version when it approached the IT Tribunal or the Court.