A set of papers, which contained names of Ministers, politicians and their associates with entries of varying amounts of money against them on various dates, was released in a weekly magazine and a television news channel on Friday, claiming they were seized by the Income Tax department during searches conducted on the premises of SRS Mining company last year. The partner of the firm, Sekar Reddy, and a senior employee, K. Sreenivasulu, were arrested subsequent to the I-T searches.
The papers — typed and handwritten — contained the names of some MLAs, a leader of a political party, and the editor of a little-known Tamil magazine.
No comment, says OPS
Deputy Chief Minister and AIADMK coordinator O. Panneerselvam, who the media organisations claimed was a beneficiary of the alleged payoffs, refused to comment, saying he was unaware of the papers. Incidentally, in May this year, when Mr. Panneerselvam was heading the AIADMK (PTA), Law Minister C. Ve. Shanmugam demanded to know why the alleged links between the former and Mr. Reddy should not be probed.
While the opposition demanded the resignation of Mr. Panneerselvam and others, Mr. Reddy claimed that he had never made any diary entries or notes on cash transactions.
“I was never shown nor inquired about these notes by any agency till now. It is only today that I saw these papers on television channels. The Central Bureau of Investigation and Enforcement Directorate cases against us are pending in courts and it would not be proper to comment more as the matter is sub-judice,” he contended.
Statements retracted
Irrespective of the authenticity of the papers, inquiries revealed that the partners and employees of SRS Mining company had retracted their statements made to the Income Tax department and the Enforcement Directorate. In letters written while in judicial custody at the Puzhal Central prison, the suspects wrote to the I-T department and the ED, disowning their statements.
Mr. Sreenivasulu sent a letter through the Jail Superintendent to the I-T department and the Special Court for ED cases, saying he fainted many times during the four-day searches in December last year due to abnormal blood glucose and blood pressure levels. He claimed that the officials, realising his inability to understand and answer questions, forcibly made him sign statements.
“I signed them in order to end the prolonged ordeal of intimidation, harassment and mental torture. In view of the above, I hereby retract all the statements signed by me during the I-T raids and enquiries,” he said. He further claimed he did not pay money “to people in position as recorded by the Income Tax department...there was a definite compulsion, threat and coercion on me to sign.” Mr. Reddy too sent similar letters, sources said.
In May, some media outlets reported that the Income Tax department had sent a report to the State government, containing details of individuals who allegedly took money from Mr. Reddy or his company. The report, which was based on the seized handwritten papers, was dismissed by State Minister D. Jayakumar as "totally wrong".
