Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Mar 28: JD(S) leader and realtor Prabhakar Reddy, who was facing a case of income tax evasion amounting to Rs 5.40 crore, was arrested by the officials of income tax department on Wednesday March 27. He was sent to Parappana Agrahara jail.

Prabhakar Reddy, who faces a number of cases including land grabbing, was arrested last month by city central branch police.

It is said that Reddy overlooked notices served by income tax department seeking payment of Rs 5.40 crore that the department claims Reddy had evaded. As Reddy continued to ignore the notices, the income tax officials, with the help of police, took Reddy into custody from Ali Asgar Road here on Wednesday.

Reddy had earlier fought two assembly and one Lok Sabha election and tasted defeat in all of them. Income tax officials had raided his office and house, and taken into possession documents. The department said that Reddy had not filed his income tax returns. During the raid, on the basis of evidences, a demand for payment of Rs 5.40 crore was made and he had agreed for the same. But he failed to pay tax as agreed, the department stated.

During the affidavits filed when fighting elections, Reddy had mentioned about various real estate business conducted by him but did not pay taxes. He also desisted from filing returns, the officials said. As he did not reply to notices, show cause notice had been issued and he war warned of arrest for non-payment, the department said.