Kiran Kumar Reddy spotted Chandrababu Naidu’s $ drama

 Chief Minister N. Kiran Kumar Reddy, who was the government chief whip in 2008, had raised the issue of funds collected by Opposition leader N. Chandrababu Naidu in the United States in the name of the NTR Trust being diverted to the India Heritage Foundation.

These funds and the alleged violation of the Foreign Exchange Manag-ement Act (FEMA) are part of the public interest petition filed by Pulivendula MLA Y.S. Vijayalakshmi against Mr Naidu in the AP High Court. The court has ordered a multi-pronged inquiry based on the petition.
Mr Kiran Kumar Reddy had brought up the matter of diversion of funds during the no-confidence motion debate moved by Mr Naidu on March 31, 2008. Mr Naidu refuted the allegations on the floor of the House.
According to the Assembly records, Mr Reddy, speaking for the treasury benches, said: “When he (Naidu) went to Detroit, there alone he collected $225,000. He collected amounts in cheques in the name of NTR but diverted to other trusts. How can your trust CEO Umesh write letters to donors asking them to send the cheques in the name of (an)other institution? Is there any hawala transaction in this?”
Reading out from two letters, Mr Reddy said, “One Umesh, CEO of NTR Trust, has written a letter to Venkat Akki stating, ‘please find enclosed the details of that donation, contributions during the visit to Detroit. We have received nine cheques favouring Indian Heritage Foundation. The details are given in Annexure-1, the same have been sent for realisation. Details of the balance amounts are given in Annexure-2.”
According to Mr Reddy, the letter said: “Out of the seven donors (who) have issued cheques favouring NTR Memorial Trust they may be (sic) requested to re-issue the cheques favouring Indian Heritage Foundation. These cheq-ues are with me (Umesh) and I will not present these for realisation and return to them separately. It is requested that the cheques from these donors may please be collected favouring Indian Heritage Foundation’.”
Kiran took Naidu to task in 2008
According to Assembly records, Chief Minister Kiran Kumar Reddy, who in 2008 was government chief whip, had asked, “Whose trust is this? What is the connection between these two? How much money was transferred? How can you (Mr Naidu) ask to divert for other trust? You have deceived NTR fans.”
Mr Naidu replied, “For the benefit of taxes, there is a foundation registered in US. We have diverted the cheques to that foundation so that we get full benefits here. This is all part of foreign exchange regulations. I am openly telling even if one paisa is misused or (there is a) violation, I will permanently quit politics. I can send you all files. Don’t make cheap allegations.”
Mr K. Rosaiah, who was finance and legislative affairs minister at that time, then said, “I think income-tax department served you notice for Rs 20 crore payment. Is it (a) fact or not? Please clarify.” Mr Naidu replied, “It is you who has instigated them and they issued notices to us. We have already replied. I can place all files of NTR Trust before (the) Speaker.”
When Mr Rosaiah repeated his charge, Mr Naidu said, “In US, donors get a tax benefit if it is given to that foundation. We have nothing to do with Indian Heritage Foundation. It was started by our Telugus. They collect funds and send them to us. We spend the amounts here.”
Mr Kiran Kumar Reddy got back at Mr Naidu, saying, “You have taken cheques and return them and ask again to write cheques in some other name. Is it fair? You have never invited in your speech (sic) at Detroit to issue cheques to Indian Heritage Foundation. If you have said that it would have been nice. But you asked for one and (took cheques) for another (body).”