Govt. worried over Tax Terrorism now

by Harish Gupta, National Editor, Lokmat Group

Govt. worried over Tax Terrorism now

Amending act, to Check probe agencies 

Harish Gupta

New Delhi, Oct 28

Realizing that anti-corruption agencies are causing immense damage to the business climate in the country in their zeal, the government has finally woken up to check them.

If the Corporate Affairs Ministry is contemplating to amend certain key clauses governing companies Act itself, all large bank fraud cases above Rs 50 crores are being examined afresh by a reconstituted Board with more powers. The board will examine, before an FIR is filed with the police, CBI or any other agency by the concerned bank, whether the case is fit enough for criminal intent and investigation.

There is virtual climate of fear among the bank manager to managing directors onward not to sanction loans and play safe. The bureaucracy is also wanting clear cut orders either from the top or from the committee of secretaries before taking decisions. Invariably, the matters are delayed, dragged and buried as no one wants to invite the wrath of the probe agencies later.

Several international companies of repute including the manufacturers of Rafale have cautioned the Indian government about the large scale registration of criminal cases of every financial act by various agencies.

There are as many as dozen agencies which are going after financial frauds in one way or the other. Its not merely the CBI or Enforcement Directorate (ED), but the CBDT & CBEC have also acquired criminal powers to prosecute now and issue look out notice against businessmen for tax evasion. Then there is Fraudulent Bankruptcy under the Banking Regulation Act, Illegal Foreign Trade and Directorate of Revenue Intelligence, Black Money Act, Company Frauds under the MRTPC Act, Information Technology Act for Online Frauds, and host of others.

Now the government want to ally the apprehensions of the Indian and foreign companies who want to set up shop in a big way particularly after tax concessions, that it wants to keep these agencies in check. This can't be done through oral orders. Therefore, systems are being put in place beginning with amending the corporate affairs act so that SFIO & other agencies do not run amok.

The advisory board will conduct the first level of examination in all major fraud cases before recommendations or references are made to investigative agencies such as the CBI, ED and others.

All cases involving officers of General Manager and above in respect of an allegation above ₹50 crore will have to now be referred to the board.

CVC Sharad Kumar told Lokmat that the advisory board will go a long way in achieving its objective to find a distinction between frauds and genuine business decisions.

Ends 

Ex-CVC Chowdary Joins Reliance Board

by Harish Gupta, National Editor, Lokmat Group

Ex-CVC Chowdary Joins Reliance Board

Govt. surprised

Harish Gupta

New Delhi, Oct 19

Former Central Vigilance Commissioner (CVC) K.V. Chowdary was nominated to the Board of directors of the country's flagship company Reliance Industries.

The Mukesh Ambani-owned company informed the Stock exchange of the key appointment. The company said that the board had appointed Chowdary as a non-executive additional director.

Chowdary, an officer of the Indian Revenue Service, was chairman of the Central Board of Direct Taxes (CBDT). Later, the Modi government appointed him as the CVC from June 2015 to June 2019. His four-year tenure was marked by some controversy in relation to a handful of politically-sensitive cases, particularly with regard to the infighting in the Central Bureau of Investigation (CBI) in 2018.

There was considerable surprise and even dismay in the government over Chowdary joining the board of a private company after remaining as top watchdog.

Though there is no legal bar on any retired officer joining private sector except that they have to undergo one year cooling period after retirement. But Chowdary retired in June as CVC and did not complete the cooling off period.

Election Commissioner Ashok Lavasa saga

by Harish Gupta, National Editor, Lokmat Group

A Lokmat Exclusive report

Election Commissioner Ashok Lavasa saga

Income Tax wants to visit his residence

Son's company got funds from Mauritius

Harish Gupta

New Delhi, Oct 2

The Central Board of Direct Taxes (CBDT) is in a catch 22 situation whether to dispatch Income Tax sleuths at the residence of Election Commissioner Ashok Lavasa.

The dilemma is that the Income officers want to quiz Abir Lavasa, son of Election Commissioner Ashok Lavasa who is not responding to its notices. The Invesitgation wing of the Income Tax department has sent five notices during the past 45 days asking him to appear before it. But he has refused to appear on one ground or the other.

Tired of his delaying tactics, the CBDT wants to send a team of its officers at the residence of Abir Lavasa who is an independent businessman. But the catch is that he lives with his father at his official bungalow. Lavasa is a constitutional authority. The CBDT has sought the indulgence of the government whether it would be within the parameters to quiz Abir Lavasa at the residence of a Constitutional authority.

The IT authorities revealed that Abir Lavasa became a director in Nourish Organic Foods in November 14, 2017. This company received Rs 7.25 crore from Mauritius-based Saama Capital in March 2019 when senior Lavasa was Election Commissioner. The Corporate Affairs Ministry's records show that Saama Capital was allotted 50,000 shares at Rs 1,500 per share on March 29, 2019. If this price is taken into account, Abir’s shareholding of 10,000 shares is valued at Rs 1.5 crores.

The Income Tax wants to quiz Lavasa with regard to this ESOP shares given to him and what value he brought to the company as a director and how the funds came from Mauritius. But Abir is neither responding to the notices and nor appearing before the tax authorities.

While separate probe into the financial dealings of Ashok Lavasa's wife and sister are going on, the IT authorities wants to expedite questioning his son's company and funds obtained through Mauritius route.

If sources are to be believed, the CBDT has sent a confidential report to the government if Income Tax officers can inspect the premises of Ashok Lavasa.

It has also sent a copy of the report to the Chief Election Commissioner Sunil Arora and Chief Vigilance Commissioner Sharad Kumar.

The government is not in a hurry and hoping that Ashok Lavasa will himself pave the way by quitting from office. Alternatively, the government will take legal course available under the provisions. It is most likely that after the current round of Assembly polls, decision on Lavasa will be finalized.

Ends 

How the con man was conned by North Block

by Harish Gupta, National Editor, Lokmat Group

How the con man was conned by North Block

Exclusive

The PMO connection

• It, now, transpires that the Income Tax sleuths were surprised when they raided the Safdarjung Enclave bungalow of P N Sanyal to look for the man who used to send text SMS messages to top officers of the Central Board of Direct Taxes.  Harish Gupta New Delhi, Aug 3 A high-profile sex racket -- busted in Delhi last week creating ripples as it involved top businessmen, bureaucrats, politicians and others -- has a PMO connection; so it seems. It, now, transpires that the Income Tax sleuths were surprised when they raided the Safdarjung Enclave bungalow of P N Sanyal to look for the man who used to send text SMS messages to top officers of the Central Board of Direct Taxes. Now, it transpires that he not only supplied high-end escort girls to politicians, corporate tycoons and bureaucrats but also used to get things done in government offices. He used to send text messages to CBDT top officials to get officers transferred from one place to other and other favours. The text SMS messages used to be sent in the name of Prime Minister's principal secretary Nripendra Mishra directly to the CBDT officers. Since such messages used to be for low rank officials, none cared to check and complied by replying on the mobile number: "Done Sir." But one day he wanted a commissioner rank officer to be given a plum posting. The text message landed on the mobile phone of the CBDT chairman from ostensibly Mishra's mobile. The chairman had technical difficulty in getting the order implemented and went to the higher-ups to seek advice. When Mishra was contacted, he flatly denied he had anything to do with it. Even the mobile number was not his either. The cat was out of the bag. It was then decided to sent a team of IT officials and raid his place. The case was transferred to the Delhi Police after it turned out to be the case of a smart cookie going berserk. Sanyal was trafficking women from Central Asia and running the syndicate. But somewhere he got involved in transfers and postings too.He was found guilty of impersonation and human trafficking and collected documented proof in the form of SMSes and WhatsApp messages. The I-T officials found documents with "fake letterheads" recovered from his house to "get his work done in government offices".