New Delhi: The Income Tax department has submitted to the Madras high court claims that former Tamil Nadu chief minister’s close aide, V.K. Sasikala had purchased several large properties, including two shopping malls and a software company, using demonetised currency worth Rs 1,674.5 crore.

The Hindu reported that an IT notice issued to Sasikala on October 15 and submitted by her to the high court, accuses the sellers of the properties of depositing those notes in bank accounts by falsifying business accounts between November 8 and December 30, 2016.

The Indian government had announced on November 8 that all Rs 500 and Rs 1000 banknotes had been demonetised – and would be replaced with a new Rs 500 and Rs 2000 notes. The Prime Minister, in his speech announcing the new policy two years ago, said that demonetisation would stop black money, reduce corruption and strangle terrorism.

The IT department had informed the high court on Friday that the assessment order has been passed based on proceedings initiated against Sasikala for purchasing a resort, two shopping malls, a software company, a sugar mill, a paper mill and 50 windmills.

As per the Hindu, the notice claims that Naveen Balaji, director of Bonjeur Bonheur Private Limited, sold a resort near Pondicherry called Ocean Spray for Rs 168 crore. Out of this amount, Rs 148 crore was paid through demonetised currency. “The cash was brought in three TATA ACE mini trucks at around 10.30 p.m.,” Balaji told IT department, as quoted in the notice.

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Around Rs 97 crore in demonetised money was submitted “in various bank accounts belonging to his business establishments by falsifying the business dealings and also in individual accounts of his family members”.

Ramakrishna Reddy of Marg Realities also stated that he deposited Rs 6 crore of his sale money from Sasikala in a bank account and distributed the rest to seven individuals.

V.K. Sasikala is currently lodged at a Bengaluru jail after she was sentenced to four years in prison under the disproportionate assets case.

Sasikala had approached the Madras high court to seek permission to cross-examine her niece J. Krishnapriya, lawyer S. Senthil and others whose statements had been recorded by the IT department.

During a raid at Krishnapriya’s residence in November 2017, the IT department found images of loose sheets on her phone. Krishnapriya claimed that she had taken pictures of the sheets after Sasikala told her to destroy them, when both of them had met during her parole period.

One of the papers had apparently been written by Sasikala’s lawyer Senthil, which allegedly details of transactions for the purchase of various properties, just after demonetisation.

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