CVC detects Rs 1,000 cr tax evasion in CWG projects

The Central Vigilance Commission has detected tax evasion of about Rs 1,000 crore by government departments and private companies in carrying out Commonwealth Games-related works.

Vigilance Commissioner R Srikumar said Rs 1,000 crore evasion was detected with the help of a multi-jurisdiction investigation platform, comprising officers from tax and other authorities, developed by CVC to look into the CWG scam.

 "In the CVC, we have been trying this (multi jurisdiction investigation platform) out in our direct inquiries into the CWG scam where 37 departments spent over Rs 15,000 crore in 9,000 publicly funded projects," he said.

"There have been many inquiries into this and each inquiry and investigation has proceeded to its own conclusions. One unique thing that was noticed in CVC's multi-jurisdictional inquiry was that a huge amount of tax evasion was indulged in by the many players in the scam.

"Many of these taxes, like Income Tax, Service Tax, VAT, etc. were to be deducted at source. The multi jurisdictional platform enabled us to flag tax evasion to the tune of nearly Rs 1,000 crore," Srikumar told PTI.

He said by bringing in the tax agencies to work closely and verify these possible tax evasions, after issuing notices to the concerned, the tax authorities have confirmed the receipt of nearly Rs 100 crore of taxes so far.

"Thus the taxes evaded are being collected and the authorities are confident of resolving most of the Rs 1,000 crore rupees tax evasion flagged by the CVC," the VC said.

The Vigilance Commissioner said the probity watchdog is also coming out with a report on Games related irregularities mainly concerning alleged tax evasions.

"We are working on the report. It will come out," he said. The CVC is looking into a total of 53 CWG graft cases involving various government civic and construction agencies.

Of the total projects, 28 were still in different stages of investigation, 13 were sent to CBI for further probe and closure report was filed in 12 others.

The commission has first found alleged financial and managerial lapses in several projects related to the mega sporting extravaganza held in the national capital from October 3-14, 2010.

Taking note of alleged irregularities, Prime Minister Manmohan Singh had in October 2010 announced establishment of a high-level committee under the chairmanship of former Comptroller and Auditor General V K Shunglu to look into the allegations of corruption.

The committee had submitted six reports pointing out acts of alleged omission and commission by officials and lack of oversight by the government. The reports are being examined by a Group of Ministers headed by Defence Minister A K Antony.