New Delhi: Cracks have started appearing in the multi-agency probe into alleged misappropriation of funds in the run-up to the Commonwealth Games.
Sources said Enforcement Directorate and Central Bureau of Investigation (CBI) have conveyed their displeasure to the Prime Ministers Office on Income-Tax department jumping the gun and carrying out raids last week without informing others.IT has now approached both the agencies asking them to get associated with the postraid investigation,it is learnt.
The I-T search last Tuesday against Games contractors did not go down well with other agencies such as CBI and ED,with both accusing I-T for taking hasty steps that were not required.They have termed the I-T action uncalled for as it was important to have coordinated action.
The protest comes in the backdrop of CBI and ED having made significant progress in Games-related investigation.CBI has registered a criminal case against officials of a civic agency linked to Games projects and is looking into others,while ED has carried out preliminary investigation against some of the accused firms believed to have laundered Games money to tax havens and back into India through round tripping.
However,I-T search came as a surprise to all as none of the agencies were briefed about the action.Though it is not mandatory,but in this case since other agencies were involved,coordination was expected,a senior ED official said.He cited how both I-T and ED had jointly conducted searches in the Madhu Koda scam which helped the government wind up investigation fast.
In their plea to the PMO,the agencies said they would not engage in any further action against any of the accused or those suspected of having misappropriated Games funds till the I-T probe was over,sources said.
They argued that there was no case for I-T at this juncture to have conducted solo search operations.If at all any tax evasion case could arise,it would only be after the end of this fiscal year when all tax dues are supposed to be deposited.The other ground for I-T to raid for alleged black money involvement did not arise as all cash had flown from the government kitty.
Misappropriation of funds by public servants was a criminal matter and thus fell in the jurisdiction of CBI which could register a case and even arrest accused if there was a valid ground,the official said.Sparing organising committee chairman Suresh Kalmadi and his family members from I-T raids when a Central Vigilance Commission probe had revealed that at least Rs 200 crore bungling is suspected in the Rs 665 crore overlays supplies has also been raised with higher authorities.
The CVC probe had alleged that four overlays providers,including a Swiss firm,had been paid exorbitant rates for the same work which was carried out by another firm during the Games for a small fraction.CVC,which is looking into the conduct of Kalmadi,had initiated probe against his close aides and had sought response from the ministries of sports and commerce on specific complaints.I-T raids were carried out on all four overlays providers but spared Kalmadi and his family.
PRABHAKAR MANISources said Enforcement Directorate and Central Bureau of Investigation (CBI) have conveyed their displeasure to the Prime Ministers Office on Income-Tax department jumping the gun and carrying out raids last week without informing others.IT has now approached both the agencies asking them to get associated with the postraid investigation,it is learnt.
The I-T search last Tuesday against Games contractors did not go down well with other agencies such as CBI and ED,with both accusing I-T for taking hasty steps that were not required.They have termed the I-T action uncalled for as it was important to have coordinated action.
The protest comes in the backdrop of CBI and ED having made significant progress in Games-related investigation.CBI has registered a criminal case against officials of a civic agency linked to Games projects and is looking into others,while ED has carried out preliminary investigation against some of the accused firms believed to have laundered Games money to tax havens and back into India through round tripping.
However,I-T search came as a surprise to all as none of the agencies were briefed about the action.Though it is not mandatory,but in this case since other agencies were involved,coordination was expected,a senior ED official said.He cited how both I-T and ED had jointly conducted searches in the Madhu Koda scam which helped the government wind up investigation fast.
In their plea to the PMO,the agencies said they would not engage in any further action against any of the accused or those suspected of having misappropriated Games funds till the I-T probe was over,sources said.
They argued that there was no case for I-T at this juncture to have conducted solo search operations.If at all any tax evasion case could arise,it would only be after the end of this fiscal year when all tax dues are supposed to be deposited.The other ground for I-T to raid for alleged black money involvement did not arise as all cash had flown from the government kitty.
Misappropriation of funds by public servants was a criminal matter and thus fell in the jurisdiction of CBI which could register a case and even arrest accused if there was a valid ground,the official said.Sparing organising committee chairman Suresh Kalmadi and his family members from I-T raids when a Central Vigilance Commission probe had revealed that at least Rs 200 crore bungling is suspected in the Rs 665 crore overlays supplies has also been raised with higher authorities.
The CVC probe had alleged that four overlays providers,including a Swiss firm,had been paid exorbitant rates for the same work which was carried out by another firm during the Games for a small fraction.CVC,which is looking into the conduct of Kalmadi,had initiated probe against his close aides and had sought response from the ministries of sports and commerce on specific complaints.I-T raids were carried out on all four overlays providers but spared Kalmadi and his family.
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