Lanco MD to make fresh statement

Venkatesh Babu, managing director of Lanco Infratech Limited, wants to make a fresh statement on the source of the Rs 34 lakh in cash seized from him by IT officials on Saturday night.

Babu had admitted more than once during his interrogation that it was the company's money. Lanco group Chairman L Madhusudan Rao, meanwhile, has gone public stating that the company has nothing to do with the cash.

"As far as the department is concerned, we have already recorded the person's statement and on several occasions during his questioning he admitted that the seized cash belongs to the company. Now, he wants to make a written statement. We accepted the request on the ground that no one should be denied an opportunity to state facts," Mushtasir Ahmed, director general (investigations), IT department, told Business Standard.

IT officials said it would be difficult for the Lanco MD to substantiate any change in his stand on the source of the money as the department has in its possession material evidence, as also his admission, which allegedly runs contrary to the company's stand.

IT officials say they are yet to receive the written statement. Efforts to contact Venkatesh Babu and other Lanco officials have proved futile.

Venkatesh Babu was apprehended at the Hyderabad airport while travelling to Delhi.