Courtroom Diary: VAT Scam in HC: Demand of Rs. 3344.21 Crores raised from defaulter businessmen.

The VAT Scam of more than 10, 000/- Crores, which is being investigated by E.D. and under consideration of HC for CBI Investigation. On Wednesday, the Haryana Govt. submitted the Action Taken Report before the Division Bench of J. A.K. Mittal. The key points of the case are:

SIT Lokayukta quantified the tax evasion scam: 10, 618 Crores in 10 Districts of Haryana.
Special Assessment Team and Special Revision Teams create demand of Rs. 334421.21 Crores.
Amount so far Recovered from defaulters: 43.99 Crores
Amount recovered under Haryana Alternative Tax Compliance Scheme for contractors: Rs. 1957.95 Crore.
Amount under appeal: 149.86 Crores.
Amount of Rs. 303.17 Crores is pending for recovery
Total FIRs registered: 78.
Matter is still under investigation by E.D

The stand of Pardeep Rapria, Advocate for Petitioners seeking CBI and ED investigation:

The Writ Petition is primarily for investigation and prosecution of defaulter businessmen, by the CBI and E.D. Its important to highlight that ED can investigate only money laundering aspect of the scam, it cant investigate the offences under I.P.C. and Prevention of Corruption Act. Therefore, the tax recovery under Haryana Alternative Tax Compliance Scheme for contractors and through other modes does not exempt the defaulters from prosecution under the Criminal Law. Tax evasion scam was committed by businessmen in conspiracy with the senior officials of the government. Therefore, the businessmen and officers of the Haryana Excise and Taxation Department needs to be booked and prosecuted under the relevant provisions of the Prevention of Money Laundering Act, Prevention of Corruption Act and IPC.
78 FIRs have been registered only against the small businessmen. Not even a single FIR has been registered against the big fishes; whose names figure in the report of the SIT, Lokayukta. In this regard, ED has written series of letters to the Haryana Govt., but the Excise & Taxation Department are not cooperating with the ED.