Hyderabad, Mar 15 (IANS): Trouble may be brewing for former Congress MP Y.S. Jaganmohan Reddy with the Income Tax (IT) department issuing Rs.122-crore notices to Jagathi Publications Private Limited, owned by him, sources said Tuesday.

The department has slapped show cause and demand notices to the tune of Rs.122 crore for the alleged mismatch of accounts detected in company records, sources said.

Jagathi Publications publishes Telugu daily Sakshi and also runs a 24-hour news channel by the same name.

The company allegedly concealed information about the income. The notices were issued after the department found several discrepancies in the details furnished about the companies which made investments into Jagathi Publications.

The department reportedly found that these companies which made the investments, did not exist or were merely briefcase establishments.

The development came two days after the son of the late Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy launched YSR Congress Party.

Jagan, as he is popularly called, resigned from the Congress last November, accusing the party leadership of trying to create a rift in his family.

The IT notices were issued a day after a delegation of MPs belonging to the main opposition Telugu Desam Party (TDP) met Prime Minister Manmohan Singh, demanding a Central Bureau of investigation (CBI) probe into the wealth amassed by Jagan between 2004 and 2009 when his father was the chief minister.

TDP MP Mysoora Reddy said the prime minister promised a probe by the Enforcement Directorate into Jagan's firms.

The TDP has also filed a plea in the Andhra Pradesh High Court for a probe while the court is already hearing a petition filed by state minister Shankar Rao against Jagan.

Jagan reportedly paid Rs.84 crore as advance tax in September last year, prompting leaders of both the Congress and the TDP to demand a probe into his wealth.