There is an elite club in Hyderabad which comprises the CEO’S, MD’s and Chairmen of all organizations with a turnover of more than Rs 300 crores. Naturally, the majority of the members are Seemandhraites.
At a specially convened meeting in Hyderabad following the decision to bifurcate the State, these gentlemen took a decision to shift the registered head offices of their companies to the Seemandhra regions.
The reason: a company pays various kinds of taxes such as income tax, sales tax, service tax, excise duty etc etc. the government in which the registered office is located gets a share of the total taxation from these companies.
So, by shifting their registered offices to Seemandhra region, the tax would go to the Seemandhra government and not the Telangana government.
These men also decided to concentrate on further expansion in Seemandhra region though they would continue to run their Hyderabad offices as branch offices.
Kesineni Travels is shifting its registered office to Vijayawada.
Navayuga Engineering Company which has projects running into hundreds of crores at Machilipatnam Port alone is relocating its registered office to Vizag where it was initially located.
More announcements are on the way.
Despite KCR’S assurances that Seemandhraites can live and continue with their businesses as usual in Hyderabad, no one apparently believes him.
