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Why Drug Peddlers Should not Pay Tax

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Read why Drug Peddlers should not pay tax; check out the story of victim, Rachappa

There have been many people who commit a crime by not filing income tax returns. Amidst all, there is one person from Bengaluru who has obediently filed income tax to IT department but got arrested for smuggling drugs. Isn’t that shocking?

Well, a construction labourer, Ranga Rachappa declared Rs 40 lakh as his annual income and filed his income-tax returns. If you are wondering that how a construction labourer managed to earn Rs 40 lakh annually, then you must know that he has probably been conducting side business which is illegal. It all started during Ranga Rachappa’s academic days when someone asked him to get ganja (cannabis) from his native Pushpapura village in Chamrajnagar district.

At that time Rachappa did that work due to lack of information about it. However, while in 2011 he came to Bengaluru, after studying up to Class 10 and saw that his fortunes started taking an upturn with this illegal offer. Soon after that, he started peddling drugs in a big way and had also recruited youngsters as agents to do his work. Drug peddling started giving him much money, so in 2013, he quit his job as a day construction labourer and went full-time into drugs. Later after becoming successful in this illegal business, Rachappa, had rented a villa in the Kanakapura Road area, a car and a property in his native village.

However, in 2015-2016, he started filing income tax and declared Rs 40 lakh as his annual income. That was the time when he caught the attention of the income tax officials. The IT department officials called him for scrutiny as he had not declared the source of his income and asked the police to keep an eye on him. And as per a report by Deccan Chronicle, on Monday morning, the Koramangala police raided his house and seized 30 kg ‘ganja’ and Rs 5 lakh cash in Koramangala police limits. In that raid, his associate, Srinivas, 47, a Chandapura resident, was also arrested, while his ganja supplier Sashu, is still at large.

Notably, the reason behind him declaring his annual income is not yet known. Reportedly, Koramangala police received information about Rachappa and his men arriving at a hotel on 80ft Road Koramangala on January 20. Soon after getting the information, police rushed there and managed to catch Rachappa and Srinivas. As per media reports, Rachappa, on lawyers’ advice, registered himself as a Class I contractor with a few government agencies. He used to sell at least 30 kg of ganja every month with the top-quality ganja at a whopping selling price of Rs 35,000 per kg. Following his arrest, he also told the cops that he was paying Rs 40,000 as rent.

According to the police, the duo used to get their work done from catering, college students and working professionals. Reportedly, the police are now investigating to find out whether more people were involved in the racket.

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GradesFixer. (2019). Why Drug Peddlers should not pay tax. Retrived from https://gradesfixer.com/free-essay-examples/why-drug-peddlers-should-not-pay-tax/
GradesFixer. "Why Drug Peddlers should not pay tax." GradesFixer, 28 Jan. 2019, https://gradesfixer.com/free-essay-examples/why-drug-peddlers-should-not-pay-tax/
GradesFixer, 2019. Why Drug Peddlers should not pay tax. [online] Available at: <https://gradesfixer.com/free-essay-examples/why-drug-peddlers-should-not-pay-tax/> [Accessed 22 September 2020].
GradesFixer. Why Drug Peddlers should not pay tax [Internet]. GradesFixer; 2019 [cited 2019 January 28]. Available from: https://gradesfixer.com/free-essay-examples/why-drug-peddlers-should-not-pay-tax/
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