VAT Scam of more than Ten Thousand Crores goes to Division Bench: A Cocktail of Money Laundering & Corruption

The case involving the scam of more than Ten Thousands Crores Rupess, after 20 adjournments, has traveled to the Division Bench of the Punjab & Haryana High Court. On Monday (07/08/2018) J. Jaswant Singh while keeping in view the report of the HC Registry directed the matter to be listed before the concerned Division Bench of the High Court. The Enforcement Directorate (ED) has already registered the case for investigating the offences of Money Laundering. The prayer for CBI Investigation is still pending before the High Court. Justice Paramjeet Singh Dhaliwal had issued notice to the effect:-

After issuance of notice the ED registered the case on the basis of more than 56 FIRs and has been regularly reporting to the High Court. Pleading are over in the matter but the matter is lingering-on for one or another reasons, since last more than two years. See the dates of hearings in the matter:

 Now, Mr. Pardeep Rapria, Advocate for the Petitioners and whistle-blowers moved a miscellaneous application before the High Court while submitting that the matter relating to the investigation by ED are required to be listed before the division bench of the High Court. J. Jaswant Singh after obtaining the report of the Registrar directed the matter to be listed before the DB-3 of the High Court. Now, the matter has been posted for hearing on 20-08-2018.

It may be recalled that the investigation by SIT conducted only in respect of 10 districts of Haryana brought to surface a staggering figure of revenue loss to the tune of about Rs.10,618 crores (Rs.Ten thousand six hundred eighteen crores) which in fact necessitates action not only against the dealers/businessmen but also against the Officers and officials responsible for criminal misconduct under the Prevention of Corruption Act.

The SIT Report consisting 345 pages was submitted on 14.01.2015 but the Haryana Government did not take any action. The petitioner’s counsellor has attached the file notings of Chief Minister Manohar Lal Khattar and Finance Minister Captain Abhimanyu and raised the question over the laxity of government in taking action in the matter and which appears to be shielding the accused.

“The accused officials of Excise and taxation department have close connections with senior bureaucrates, police officers and politicians of different political parties in Haryana”, contended the petitioner’s counsel Pardeep Rapria.

The rice processors of Haryana may also face the music as their names have also been indicted in the SIT report.

It was noticed by the SIT during enquiry that officers of Excise & Taxation Department, Haryana, at all levels in connivance with the traders and builders/developers caused huge loss to the state. The system of Tax Evasion/Refund by corrupt means is a well established and unofficially approved system which is mutually beneficial to the excise and taxation officers and traders and builders and hence nobody wants to disturb this convenient system....”

The SIT Lokayukta also mentioned “A number of other cases of builder/developer could not be examined due to non co-operation on part of the District Excise and Taxation Commissioners of Gurgaon and Faridabad, which confirms the allegations of the complainant that these builder/developers have not paid the Sales Tax/VAT as applicable on sales of flats/shops to prospective buyers. An estimated loss of about Rs. 10,000 Crores is involved in the files....  

The SIT also felt that since the tax evasion scandal involves big names and affirms and cannot be going on without active support of Excise & Taxation Officers at all levels as it also involves jurisdictional issues as it demands enquiry in Delhi, Rajasthan, Punjab and other states, it would be appropriate if this matter is investigated by an agency like CBI”

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