Cinthakunta Munuswamy Ramesh alias CM Ramesh is a Rajya Sabha member from Telugu Desam Party and hails from Kadapa.
He and his family are into irrigation contracts and other significant projects in AP.
Searches were conducted on 12 premises in Hyderabad and five locations outside Hyderabad.
HYDERABAD: Income Tax sleuths on Friday conducted massive searches on Andhra
Pradesh chief minister N Chandra Babu Naidu’s close confidant CM Ramesh familyowned
flagship company Rithwik Projects Private Limited and its subsidiaries in
Hyderabad and Andhra Pradesh.
Cinthakunta Munuswamy Ramesh alias CM Ramesh is a Rajya Sabha member
from Telugu Desam Party and hails from Kadapa. He and his family are into irrigation
contracts and other significant projects in AP.
Searches were conducted on 12 premises in Hyderabad and five locations outside
Rithwik Projects Private Limited was incorporated in 1999, and it has CM Ramesh’s
kin CM Rajesh and three others as directors of the company. The turnover of the
company in 2016-17 was Rs 1357 crore. And it has a net worth of Rs 302 crore.
CM Rajesh is also a director of Rithwik Properties Private Limited, Global Earth
Minerals private Limited, Rithkwik Holdings private limited, Anjandri Power private
limited, Kadapa Power Private Limited, Narayanadari Green Energy Private Limited,
Kadiri Green Power Private Limited and Rithwik Green Power Limited. The
companies are into construction, mining and power generation.
Income Tax officials knocked the doors of the luxurious property of CM Ramesh at
Jubilee Hills spread over 40,000 square foot which is a four-level structure , with a
25-foot-high floor to ceiling and teak wood pool deck. Famous architects Zubin
Zainuddin then designed the House.
The biggest project executed by Rithwik so far is the construction of Koteshwar
Hydro Electric Project in Uttarakhand worth Rs 787 crore. In Andhra, it is currently
implementing Rs 805 crore PVNR Thupakulagudem project. The company is
presently awarded Rs 1600 crore worth projects in HNSS irrigation project in
Anantapur. Mines department recently slapped fines on Rithwik Projects Private Ltd
and Sri Sai Laxmi Construction Company regarding mining irregularities in
Vamsadhara project in Srikakulam.
In a writ petition filed in the Andhra Pradesh High Court against AP CM
N Chandrababu Naidu and his aide, former chief minister Y S Rajashekar Reddy’s
wife YS Vijayamma alleged, “CM Ramesh, a close aide of Naidu, was then chairman
of Rithwik Projects Limited, a contraction company which holds Chandra Babu
Naidu’s ill-gotten money. This is the reason for the elevation of Ramesh as the top
functionary in the TDP. From a small turnover of Rs 61 crore in 2003, Rithwik
Projects returned a turnover of Rs 488 crore by 2009 as a sub-contractor which
speaks about the difficult and phenomenal growth of the company.”
She further alleged, “There was a regular infusion of capital into the company
annually, which is surprising, especially when even a Singapore-based Private
Equity Firm – Baring Private Equity Asia IV Mauritius invested in this small contract
firm from Andhra Pradesh. The list of Shareholders is enclosed herewith. By the year
2009 when the elections to the AP state assembly were conducted, enormous
amounts of cash balances were accumulated, and a lot of cash expenses were
booked running into crores of rupees.” It was alleged foreign currency transactions
were carried out in a sub-contracting company which needs a thorough verification.
Andhra Pradesh high court dismissed the petition in 2012 February. As Vijayamma
appealed to Supreme Court, it rejected the same request in 2012 July