Everonn - news and views

This is a Chennai based education company with a market cap of 491 Cr at current price of Rs 256 (PE of 6.4).

P kishore is the founder and MD of Everonn education which claims to be the largest VSAT education network in the world. He was arrested in early September 2011 for tax evasion - bribe of 50 lakh was given to supress 116 Cr of income. 

Immediately after the arrest, Nikhil Gandhi, who was an independent director, took over as Chariman of the board as JJ Irani, former director of Tata sons and known for his corporate governance, resigned from the position.

Susha John the co-promoter was promoted as the CEO to run the company. 

I wonder why would some public company suppress income. Is it to move money into promoters pockets either to get back the pledged shares or to retain personal earnings?