Sunday, October 17, 2004
MY COMMENTS TO SUCHETA DALAL'S ARTICLE ON TOOTHLESS CVC
MY COMMENTS ON SUCHETA DALAL ARTICLE on TOOTHLESS CVC ON 8TH FEBRUARY 2004 IN INDIAN EXPRESS
I shall begin with a Quote from speech of William Lloyd Garrison:-
The warrants on the President of the country and on the Chief Justice is classic case. The surprising thing is that the Supreme Court of India lacks the will to pull up various judges of Gujarat High Court by issuing notices to each one of them
I shall begin with a Quote from speech of William Lloyd Garrison:-
“On this subject, I do not wish to think, or speak, or write, with moderation. No! no! Tell a man whose house is on fire, to give a moderate alarm; tell him to moderately rescue his wife from the hand of the ravisher; tell the mother to gradually extricate her babe from the fire into which it has fallen; -- but urge me not to use moderation in a cause like the present. I am in earnest -- I will not equivocate -- I will not excuse -- I will not retreat a single inch -- AND I WILL BE HEARD.”
This is how I ( P S Mody) as a writer feels, experiences in personal life in relation to the toothless Central Vigilance Commission” This letter is also my whistle even though it may be feeble, I hope that it gets amplified a thousand times.
This refers to the article regarding toothless Central Vigilance Commission which appeared on Sunday 8-02-2004 in Indian Express.I am furnishing extract of complaint letter against two directors general of Income tax –Investigation addressed to Central Vigilance Commission.
When I had brought the matter concerning tax evasion to their knowledge by group connected with Core HealthCare Group against whom Great Bank Robbery article appeared in Indian Express on 7-12-2002.Not only did CVC acted but the CBDT , their member investigation and the new Director Generals – Mr. Roongta and then current Mr.U. P.Singh shielded the group while harassing the undersigned by raising huge tax demands.
This is how they conduct the inquiry.
Not only CVC is toothless, the entire government along with the top officials of the income tax department are cowards, spineless, corrupt and toothless. When Mr. Jashwant Singh goes to Kandhhar to hand over terrorists in view of plane hijacked. What one can expect. I hope that a message is sent to young people not to marry or to stop having children or move to other countires .
I have experienced the suffering so much in my personal life , that I feel helpless – to save my wife and my children from harassment. I am in a similar situation of a plight of a woman in movie ROJA who wanted to save her husband fallen in the hands of terrorists.There is no receptivity to listen. All of us are in a similar situation of concentration camp of Germany. There they were executed in gas chambers, here in our country we are being slowly poisoned – and we do not realize that , we are being poisoned.
It is the media who needs to play vital role in waking up people from deep slumber and ask the government to furnish concrete steps on all fronts. When , a woman like Ms Indira Gandhi could galvanize the functioning during emergency , it is necessary that the emotions of the people are stirred up for future safety of our children..Our elderly politicians has not learnt lessons of Mahabharata- Bhisma indifferent to draupadis being disrobed, Dhristrashtra remaining blind and Gandhari playing blind. The way Lord Krishna – felt that he was not able to change the mind of Duryodhana on account of his pride .
On account of lessons of Gita given by him, Lord Krishna wants each of the citizens of the country to take gandiv to weed out corruption in the country. Only strong persons like you who can understand various issues , who can powerfully communicate thoughts can make a change. Otherwise every family’s HOUSE IS ON FIRE whether he is in power or not in power.
As long as such drastic and radical steps are not taken, the judiciary are pawns to the bureaucrats, politicians, lawyers , chartered accountants.
Only when several judges of supreme court suffer the pain of victimization in their own personal families while in power then only a true understanding to take radical steps would arise. Not till then.
Personal grief and loss is perquisite to change to become a compassionate being . These days are not too far. What has our Prime minister to lose , what has jaylalita to lose, as they do not have personal family and are safe on account of physical security available to them. They do not have any personal families at all to under stand pain and suffering of common people.
It is the same reason that Bhisma- a bachelor , who played indifferent to woes of draupadi. These are the people who lack sensitivity to touch inner plight of common people. On this Sunday , deputy prime minister advani came in my neighborhood to open a free medical camp. Entire administration was at his service, all the litter/garbage was removed (which normally did not happen) and water tankers appeared to sprinkle water on the ground. For saving of one or two lakhs , sum exceeding one crore must have been used up in a day .
When the Prime minister who being captain of the ship gets down first from the ship even before the destination has been reached- shows his own lack of confidence of the performance and his effectiveness that he chooses to prepone the elections What can one expect from him except powerful speeches.
The bureaucracy understand and feel the weaknesses of their masters. Your level of consciousness and understanding is way above all of us as we see it in your columns . You have the flair of communicating and by God’s grace , you are close to media to carry it persuasively. All it needs is focus, persistence and intensity as described under:-
When the sun rays are made to pass through lens, then only the sun rays has the capacity to burn away a dry leaf. Not before. What is needed is persistent and intensified focus of one issue at a time with a total sense of urgency.
Master sitting in a chariot is the one who instructs the sarthi where to go, and if he does not take him to the desired destination, he takes over as sarthi and uses reigns to give directons and uses whip if the horses do not follow the instructions.
This is what is expected of Our respected President of India who has compassion and sensitivity to children and citizens of the country and the awareness of root problem of corruption. He has to personally see that leaking pipes are replaced all along. He has the experience of being a mission director and he believes in frugality and he has a sensitive heart of Lord Krishna to understand the feelings of Draupadi who is being stripped by Dushashana and to top it all he does not have any personal motive or axe to grind.
He has personally experienced that the warrants can be issued against him, that his own security force is involved in raping. All we need to do is request our beloved President , that as a Supreme Commander of Internal chaos in the country , he takes a direct charge, he opens a war office to fight corruption equipping it as a call centre , having facilites of fax, telephone numbers and young people. These young people would attend to email and faxes, on authority of the President of the country , they send out faxes/ post for fast response followed up by direct and unfiltered communication of our dear president by phone calls in case the concerned officer does not respond or behaves indifferently or dodges the issue.
All he has to do is to punish the person. Such direct action has creating an impact of atleast 1000 times. This is the way Ambani functioned or the way Indira functioned during emergency. He would not be able to accomplish any thing if he depends on sansad members. As a mission director , he would understand that too many cooks spoil the broth.
The way Chanaykya did not move out of his hut, he can remain in his residential house and can change course of entire nation with help of TV camera. being installed in all the courts, police stations through out the country. The fear of being watched by some one would make the administrators, lawyers and the judges to behave properly. Only then he would be worthy of love of children that he cares otherwise he will be despised by the same children whose ambitions have been aroused as they would be one day frustrated on account of lack of vision of their fathers and forefathers. Only you can make them see differently.
We need to focus on the roots and not on the leaves to change the system. CVC is just like one of the leaves not a root. We have to provide water to the roots so that the flowers and fruit blossoms.By taking care of one leaf of CVC or CBI , the tree is not going to bear flowers or fruits. This is my personal experience.
Besides, all of these is needed to be changed before the elections. That is trump card for common people – so that the politicians do not run away with empty promises. They have to be made to slog , to sweat like what we saw in Lawrence of Arabia to win the hearts of people. These are the kinds of people who are being needed by the country. They may play a small role but they deliver what is being needed.
Otherwise the Titanic moving at high speed is heading towards an iceberg not knowing that nine tenths is concealed underneath while the people may rejoice being on Titanic for time being, not knowing what future has been stored for them. All of us are on aboard this Titanic.
I have experienced it in my life, I was deaf, dumb and blind that I did not realize and assimilate the message when I saw it when the movie was released in the country.
The words of director/producer of Titanic are “ Titanic is not just a myth, a parable, a metaphor for the ills of mankind. It is also a story of faith, courage, sacrifice and above all else, love.” We are aboard such leaking Titanic- Can Our Finance Minister and experienced in Defence studies, can save us from such leaking Titanic of government administration. The way he saved life of terrorists and the passengers on flight to Kandhar? Or he wants us to enjoy Christmas party to rejoice and drink –feel good factor being served to us aboard the Titanic.
Even in war, the supreme commander inspects his troops. Has he ever been to various incometax departments and the excise department and had felt the voices of common people. This is what needs to be done.
All of us have to ignite our own minds and spread the message , the way our beloved President refers in his book. And we the citizens need to ask ourselves ask not what country can do for you, ask what we the citizens can do for our country by making the bureaucrats and the politicians offer their blood and sweat for the country to save the nation.
This is what Kennedy and Churchill not as politicians in power would have said but would have uttered these same words if they were ordinary citizens of the country.All of us need to make such plea to our current President of India who is our Lord Krishna, like draupadi to Lord Krishna – Only he has the receptivity and understanding to listen.
He is our only savior and hope of the nation who can do true inner introspection without any ulterior motive. Fortunately, he is our Bhismahpitamah who understands Bhisma of Kurkshetra and plight of Arjun and rebirth of Lord Krishna.
All of them would be angry on such bitter comment , when we utter such harsh words but still we have to persist to change their hearts. Music can be played on an instrument only if the strings are pulled in opposite ends adequately and then tied. Not otherwise.
One needs only one drop of curd to set the milk to curd to extract ghee. Even if we imagine ourselves to be one such single drop of curd , it is sufficient enough to make impact for lives of our children to enjoy taste of such ghee if not us.
Believe me, in case our dear President directly intervenes in a case described as under, opening his third eye, his mission is successful. Fortunately, even the Chief Justice of Supreme Court has experienced of mischief of meghaninagar in Ahmedabad. This can be just a beginning to make sweeping changes in the revenue department for overall benefit of the country.
I may become a guniepig and a target and be consumed in the process. I am willing to take such risk even if I may be consumed like a common person like Jack- Leonardo of Titanic who freezes to death but can be hope for life to millions of Rose to survive and quench their thirst of real life. Let this start with the undersigned .
All I need is your support to blow whistle –loudly, persistently so that it can be heard finally. It may not help me or my family but I am damn sure that it will create an impact a change for others.
Yours sincerely,
P S Mody
Wednesday, July 07, 2004
COPY OF COMPLAINT LETTER TO Central Vigilance Commission 3-6-02
YOU THE LEADERS HAS THE NECESSARY INTELLIGENCE WHEN YOUR LOYAL DOGS DO NOT BARK TO CATCH BUREAUCRATS AND GREAT BANK ROBBER AND HIS ASSOCIATES.
The complaint letter to the Central Vigilance Commission dated 3-6-2002 is reproduced herewith along with letter from Additional Director of Income Tax (VIGILANCE) –II dated 18-10-2002 and my reply dated 31-10-2002.
FROM :
P. S. MODY
JANMANGAL APT, 2ND FLOOR
40 BMM Society
AHMEDABAD 380 006
DATED 3-6-2002
TO
THE CENTRAL VIGILANCE COMMISION
SAATKARTABHAVAN
NEWDELHI
Copy marked to:
1) THE CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES
2) THE MEMBER INVESTIGATION,CBDT
3) SHRI ROONGTA, THE DIRECTOR GENERAL OF INCOME TAX INVESTIGATION, AHMEDABAD
Respected Sir,
SUBJECT: COMPLAINT AGAINST DISLOYAL OFFICERS OF
OFFICERS OF INCOME TAX DEPARTMENT OF
AHMEDABAD.
1) MY REF LETTER TO I.T. DEPT: 18-6-1999 (ENCL)
2) REF LETTER FROM DEPT: DG/AHD/INV/29/99-2000 DATED
19-9-2000
==================================================
1. I am enclosing copies of important letters addressed to various officials of Income Tax Department in Ahmedabad and I have reason to believe that persons referred in para 2 are dishonest, disloyal and their professional conduct is extremely doubtful. Their attitude is aptly described in my letter dated 2-7-2001. On account of alleged illegal acquisition of immoveable property by Dhanyushya belonging to Rupmanglam and Flovin and supported by interim findings as per the letter dated 19-9-2000 by Mr. C.M.Betgiri, what prevented him to take prompt action against Dhanyuhsya in the interest of revenue and suspending the auditors who play major role in frauds shaking the doudnations of trust in the country. This has to be seen in light of speedy action against Andersons as audit firm in case of Enron and the swiftness with which the American Government has acted without granting any favour to the top audit firm.
2. I humbly request you to conduct inquiries on (A) Mr. C.M.Betgiri in his capacity as Director General and Chief Commissioner of Income Tax (currently promoted Memebr CBDT, (B) Mr. V.D. WAKHARKAR, in his capacity as Director General, (C) Mr. D.N. Kar, in his capacity as ADI Unit 1(4) (D) Mr. N.M. Parmar., Ward 11(2).
3. I am giving reasons for conducting probe against erring officials of the Income tax department in Ahmedabad as under:-
(a) How come Mr. D, N. Kar, ADI UNIT 1(4) did not make efforts to collect all the necessary basic evidence from Dhanyushya, Mr. Jalundhwala, Mr. H. Kashiparekh by calling for transfer deeds, minute book records, valuation report for transfer of shares,especially when Dhanyuhsya b/s 96/97 did not reflect ownership of shares belonging to my family, when he was investigating the case from March 1998 till March 1999 and also record their statement thereafter for various explanation.
(b) Why Mr. C.M. Betgiri(Director General of Income Tax-Investigation) on receipt of my letter dated 18-6-1999 did not provide adequate guidelines on contents of the letter to the concerned DDIT so that DDIT can effectively carry out the assignment and report findings to Mr. C.M. Betgiri within amonth instead of sending two additional reminders on 30-10-1999 and 23-02-2000.
(c) How come Mr. C.M.Betgiri did not ask DDIT to summon Mr Kashiparekh, the auditor of Rupmanglam and Flovin for valuation report on shares and record his statement when he could easily assesss from Mr Kashiparekh’s reply annexed in my letter dated 18-6-1999, that he was taking the department for a ride for not giving report on ownership of the companies backed by evidence.
(d) Based on interim findings on account of my recorded by DDIT Mr. R. Diwedi, on 10-5-2000 and the annexures provided as narrated in my letter dated 11-5-2000 and interim report available to Mr. Betgiri, why did he dump the responsibility of further investigation to the assessing officers as stated in his letter dated 19-9-2000 addressed to the undersigned. (It is like asking physician to do the work of pathologist or surgeon).
(e) Why Mr. C.M.Betgiri did not want to assign investigation to his subordinate along with the assistance of Mr. R. Diwedi who had already become conversant with the case and understand the intricacies of four companies in view of the statement recorded on 10-5-2000.
(f) How come Mr. C.M, Betgiri as DG expected various assessing officers t take intiaitive and coordinate simultaneously with other assessing officers to carry simultaneous investigation . Mr. C.M. Betgiri had adequate experience to understand the human psychology that there is resistance to finish the task started by others.
(g) What precautions did he take in the interest of revenue that assurance
(h) given to me by him vide his letter dated 19-9-2000 was going to be honoured by the assessing officers and reported to the DG’s office within reasonable time limit.
(i) How is that immediately after telegram on 15-9-2000 to Mr. C.M.Betgiri, the registered office of Rupmanglam under the signature of Mr. Jalundhwala got transferred to Baroda address as per the ROC records. It appears that there is collsion with Dhanyuhsya and the auditor of Rupmanglam.
(j) How come Mr. V.D.Wakharkar, the new Director General of Income Tax,-Investigation, did not review the decision of assignment to the assessing officers in light of my letters dated 3-10-2000 and 23-10-2000, when a lay man like me can understand the shortcomings. This shows that he was also in collusion with Dhanyuhysa, Jalundhwala, Kashiparekh to avoid further investigation. Incidently, Mr. Wakharkar was working under Mr. C.M.Betgiri.
(k) Why Mr. Wakharkar was complacent to my further letters dated 30-10-2000, 27-11-2000 and telegrams dated 14-12-2001 and 4-1-2001 in light of my comments on involvement of Global TRUST BANK FRAUD. In fact such issues should make him more vigilant to act. Had he taken, necessary action, further scandals involving Global Trust Bank which shook the financial markets would have been nipped in the bud.
(l) Even when I had complained about the harassment by the assessing officer vide my letter dated 4-6-2001 addressed to Mr. Wakharkar on account of reassessment notice, how come ignored to give a detailed reply and take necessary steps to record the statements.
(l) Even when shortcomings and defects of working of the department were highlighted through my letter addressed on 2-7-2001 and copy of this letter marked to Director of Investigation, Mr. Vijay Ranjan on 4-7-2001 and discussed thereafter with Mr. Vijay Ranjan and Mr. Wakharkar,how come, in the interest5 of revenue, the matter was not handled by the investigation department for effectiveness.
(m) Pursuant to my letter dated 26-7-2001 to the Investigation department , What were the findings of the Appropriate Authority and action taken keeping view the annexures given on 10-5-2000 to DDIT , Mr. R.Diwedi.
(n) What prompted Mr. N.P.Gangadharan,ward 8(3) and JCIT to reopen the Assessment of A.Y. 95-96 and A.Y. 96-97. In view of notice issued on 31-5-2001, whether the notice was issued to harass me. What efforts were made by him to collect the necessary information prior to the issue of notice which was against me and my family. I reserve to make additional comments at a later stage.
(n) what are the findings by Mr. R.Nabar , J.C.I.T assessing Dhanyuhsya in response to my letter dated 29-10-2001 and reminder letter dated 24-1-2002 and whether he has collected necessary evidence and has taken any action in the interest of revenue in view of illegal ownership of property owned by Dhnayushya.
(o) What prompted Mr. N.M.Parmar, ward 11(2) to carry reassessment based On presumptions and did not bother to collect necessary evidence of ownership of shares by interrogating J. Jalundhwala and the auditors of
Rupmanglam,,m Flovin and Dhanyushya by exercising his powers to visit their offices in case they were not extending cooperation in interest of justice and fairness to me and my family members by raising huge capital gains tax demand even when Dhanyuhsya balance sheet 96/97 did not reflect the ownership of the shares and reported to DDIT.
(p) Why Mr. N.M.Parmar, has accepted identical valuation of shares alleged be transferred in 1996 and 1998. I am of firm belief that he is in collusion with Mr. Kashiparekh who has been handling files for my brother’s family for the shares shown to be transferred in March 1998. He has not probedthe matter to find the truth.
4. I humbly request your Honour to seek findings, report and action taken report from the Investigation department pursuant to annexures submitted on 10-5-2000 as narrated in my letter dated 11-5-2000 in light of commitment given vide
Sept 19-9-2000 by Mr. Betgiri pursuant to my letter dated 18-6-1999.
5. In case, no concrete findings been carried out by Mr. Betgiri and Mr.Wakharkar, it is my humble request that present MEMBER-INVESTIGATION is called to furnish the findings by collecting all necessary evidence including MINUTE book records from Mr. Jalundhwala, auditors of Rupamanglam/Flovin and Dhanyuhysa immediately on receipt of this letter. I have already written to present Director General of Income Tax-Investigaqtion, Mr. Roongta on 23-1-2002 to take concrete steps to recover tax from Dhanyuhysa and black lsit the auditors involved. This information is necessary in the interst of revenue as well as natural justice to me.
6. I would like to draw the attention that in the suit filed by me on Dhanyuhysa, Jalundhwala, Core Health Care and Global Trust Bank, they have not been able to produce evidence of ownership of the immoveable property and shares where they have managed to avail term loan of Rs 12.5 crores.
I would be happy to provide additional information and clarification as and when necessary. I would appreciate that the present letter is acknowledged and complaint number is assigned.
Thanking you.
Yours faithfully,
P S. Mody
Enclosure marked to the Central Vigilance Commission:
My letters dated :18-6-1999,11-5-2000, 24-7-2000, 3-10-2000,23-10-2000, 30-10-2000,27-11-2000,4-6-2001, 2-7-2001, 4-7-2001, 26-7-2001,29-10-2001,23-1-2002,24-1-2002.
My telegrams dated 15-9-2000,14-12-2000, 4-1-2001, 20-1-2001 and 15-3-2001.
Copy of letter addressed to P S Mody on 19-9-2000 by Mr. C.M.Betgiri,
The Director General of Income Tax.
Above letter dated 3-3-03 was also addressed to Chief Commissioner of Income Tax . Income Tax Department, Aaaykar Bhavan, Ahmedabad.
The said letter covered up particulars previous correspondence and telegrams to the office of the Director General of Income-Investigation pursuant to the reply given by predecessor Director General of Income Tax =Investigation vide letter
No dated September 19,2000.
From:
GOVERNMENT OF INDIA
DIRECTORATE OF INCOME TAX(VIGILANCE), WESTERN REGION
ADDITIONAL DIRECTOR OF INCOME TAX(VIGILANCE)-II
AAYLKAR BHAVAN,MAHARSHI KARVE ROAD,MUMBAI-400 020
TELEFAX-2001275(direct)/2039131 Extn 2347(general)
CONFIDENTIAL
F.NO.DIT(V)(W)/CON.166/U-II/2002-108
Dated 18-10-2002
PANKAJ S. MODY
JANMANGAL APT
2ND FLOOR
40BMM SOCIETY
AHMEDABAD 380 006
SIR,
1. This office has received your letter dated 3-6-2002 addressed to the Central Vigilance Commissioner (CVC), containing allegations against senior officer’s of the Income-Tax Department.
2. You are requested to please confirm the complaint. While confirming, you can send a copy of the complaint if you have kept one Any evidence/document in support of the allegation should also be enclosed. You are also free to see the undersigned on any working day with prior appointment in Room No. 347, 3rd Floor, Aaaykar Bhavan, M.K.Road, Churchgate, Mumbai 400 020 with the copy of the said complaint.
3. I may assure you that your meeting with the undersigned shall be kept in secret confidence.
4. In case the alleged complaint has not been made by you, I shall be obliged if you will be kept enough to state the same through a letter within a week of receipt of this letter.
Yours faithfully,
J.B. MOHAPATRA
ADDITIONAL DIRECTOR
OF INCOME TAX(VIG).-II,MUMBAI
BY SPEED POST AD
From:
PANKAJ S. MODY
C/O SHRI S.S. MODI
2ND FLOOR
JANMANGAL APT
40 BMM SOC
AHMEDABAD 380 006
EMAIL ID: psmody@indiatimes.com
Oct 31,2002
To
THE ADDITIONAL DIRECTOR OF INCOME TAX (vig)-II
ROOM NO 347, 3RD FOOR
AAYKAR BHAVAN
MAHARSHI KARVE ROAD
MUMBAI 400 020
FAX NO 200 1275
SIR,
FOR KIND ATTENTION: SHRI J.B.MOHAPATRA
REFERENCE FILE: F.NO DIT(V) (W) CON.166/U-II/2002-108
LETTER DATED: 18-10-2002
=================================================
This is in reference to your above CONFIDENTIAL letter in connection with my complaint letter filed with Central Vigilance Commission.
2. I confirm that I have written letter of complaint dated 3-6-2002 to Central Vigilance Commission and I am enclosing copy of letter addressed to Central Vigilance Commission.
3. I am intrigued that Central Investigation has officially designated the Income Tax department to conduct detailed inquiry. I would appreciate to havce copy of their reference letter for my satisfaction as I have not received any communication from them in this regard that the probe would be handled by your office. I would appreciate that you furnish reference file with Central Vigilance Commission.
4. I am enclosing letter addressed to Director General of Income Tax Investigation addressed to him on 10-6-2002 and I have reason to believe that he has not conducted further inquiries in view of the letter. Before conducting any meaningful vigilance inquiry it is necessary that the investigation is completed so as to secure complet evidence and recording of statement.
5. In light of para 4, you direct Mr. Roongta to submit result of findings pursuant to my correspondence till date covering the spirit of letter dated 23-1-2002 ,3-6-2002 and 10-6-2002 within next ten working days of receipt of this letter for sake of efficiency and effectiveness. In case, Mr. Roongta does not take initiative on your instructions, you immediately launch vigilance inquiry on Mr. Roongta for being in collusion with the auditors,etc.
6. In order to maintain conducive, free and relaxed atmosphere for vigilance inquiry , you specifically instruct Additional Commissioner of Income Tax, Range 11 (Mr. M.H.Pandav, AHMEDABAD phone 6584535 ,resid 6748167} to withhold any coercive measures for tax recovery by the tax recovery officer Mr. James Kurien- Range 11 and thereby harass me by not staying the demand in light of my letter dated 17-10-2002 addressed to him which specifically covers the mischief of the assessing officer Mr. Parmar in collusion with the auditor Mr. Hemant Kashiparekh. I have reason to believe that Mr. Roongta has intiated steps for harassment against me in view of my complaint to the vigilance commission and subtle threats during the meeting on 25-6-2002 through the assessing officer. Range 11 and their supporters. In case Mr. Pandav does not initiate steps to conduct inquiry on Mr.Kashiparekh in light of my letter dated 17-10-2002 addressed to him , you shall launch immediate inquiries against him on grounds of tacit collusion with the auditors and denying fair justice and equity to me. Kindly confirm whether you are initiating steps to restrain them.
7. I have strong reason to believe that the matter has been leaked immediately after my telegram on 15-9-2000 to Director General Of Income Tax-Investigation which has led to the amalgamation of the companies involved to stall further investigation in view of the instruction of further investigation was passed on to the assessing officer as per the letter dated Sept 19,2000 issued by the Director General to the undersigned.
8. In case, Mr. Wakharkar had promptly followed up based on the contents of my letter dated Oct 30,2000 the scandal which involved Ketan Parekh, Global Trust Bank which rocked the stock market would not have taken palce at all in view of the information annexed at the time of my statement recorded on 10-5-2000 by DDIT unit I (IV).
9. I urge you to have a time bound programme for conducting inquiry otherwise this inquiry has no meaning at all.
10. It would be more meaningful and fruitful, if you come to Ahmedabad, understand the facts of the case with Mr. R. Diwedi , Investigating familiar with the case, record the statement of Director General of Income Tax –Investigation, Mr. Roongta and discuss the matter with me in person, intimating time and pace where you can be contacted in Ahmedabad. This is the only way you would be able to pull up the working of the investigation department. In case this is not done, I hardly see that any informant would be willing to share valuable information. At the moment, I am not in a position to come to Bombay at all.
11. A copy of this letter is faxed to you while original with annexures is being sent separately by post which may take some time for you to receive on account of postal holidays and diwali vacation.
12. Kindly acknowledge receipt of this letter. Please note my email Id. psmody@indiatimes.com
Thanking you.
Yours sincerely,
P S MODY
ANNEX: 1) LETTER DATED 10-6-2002 ,25-6-2002
2) LETTER DATED 17-10-2002
3) COPY OF LETTER ADDRESSED TO CENTRAL VIGILANCE
COMMISSION 3-6-2002
The complaint letter to the Central Vigilance Commission dated 3-6-2002 is reproduced herewith along with letter from Additional Director of Income Tax (VIGILANCE) –II dated 18-10-2002 and my reply dated 31-10-2002.
FROM :
P. S. MODY
JANMANGAL APT, 2ND FLOOR
40 BMM Society
AHMEDABAD 380 006
DATED 3-6-2002
TO
THE CENTRAL VIGILANCE COMMISION
SAATKARTABHAVAN
NEWDELHI
Copy marked to:
1) THE CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES
2) THE MEMBER INVESTIGATION,CBDT
3) SHRI ROONGTA, THE DIRECTOR GENERAL OF INCOME TAX INVESTIGATION, AHMEDABAD
Respected Sir,
SUBJECT: COMPLAINT AGAINST DISLOYAL OFFICERS OF
OFFICERS OF INCOME TAX DEPARTMENT OF
AHMEDABAD.
1) MY REF LETTER TO I.T. DEPT: 18-6-1999 (ENCL)
2) REF LETTER FROM DEPT: DG/AHD/INV/29/99-2000 DATED
19-9-2000
==================================================
1. I am enclosing copies of important letters addressed to various officials of Income Tax Department in Ahmedabad and I have reason to believe that persons referred in para 2 are dishonest, disloyal and their professional conduct is extremely doubtful. Their attitude is aptly described in my letter dated 2-7-2001. On account of alleged illegal acquisition of immoveable property by Dhanyushya belonging to Rupmanglam and Flovin and supported by interim findings as per the letter dated 19-9-2000 by Mr. C.M.Betgiri, what prevented him to take prompt action against Dhanyuhsya in the interest of revenue and suspending the auditors who play major role in frauds shaking the doudnations of trust in the country. This has to be seen in light of speedy action against Andersons as audit firm in case of Enron and the swiftness with which the American Government has acted without granting any favour to the top audit firm.
2. I humbly request you to conduct inquiries on (A) Mr. C.M.Betgiri in his capacity as Director General and Chief Commissioner of Income Tax (currently promoted Memebr CBDT, (B) Mr. V.D. WAKHARKAR, in his capacity as Director General, (C) Mr. D.N. Kar, in his capacity as ADI Unit 1(4) (D) Mr. N.M. Parmar., Ward 11(2).
3. I am giving reasons for conducting probe against erring officials of the Income tax department in Ahmedabad as under:-
(a) How come Mr. D, N. Kar, ADI UNIT 1(4) did not make efforts to collect all the necessary basic evidence from Dhanyushya, Mr. Jalundhwala, Mr. H. Kashiparekh by calling for transfer deeds, minute book records, valuation report for transfer of shares,especially when Dhanyuhsya b/s 96/97 did not reflect ownership of shares belonging to my family, when he was investigating the case from March 1998 till March 1999 and also record their statement thereafter for various explanation.
(b) Why Mr. C.M. Betgiri(Director General of Income Tax-Investigation) on receipt of my letter dated 18-6-1999 did not provide adequate guidelines on contents of the letter to the concerned DDIT so that DDIT can effectively carry out the assignment and report findings to Mr. C.M. Betgiri within amonth instead of sending two additional reminders on 30-10-1999 and 23-02-2000.
(c) How come Mr. C.M.Betgiri did not ask DDIT to summon Mr Kashiparekh, the auditor of Rupmanglam and Flovin for valuation report on shares and record his statement when he could easily assesss from Mr Kashiparekh’s reply annexed in my letter dated 18-6-1999, that he was taking the department for a ride for not giving report on ownership of the companies backed by evidence.
(d) Based on interim findings on account of my recorded by DDIT Mr. R. Diwedi, on 10-5-2000 and the annexures provided as narrated in my letter dated 11-5-2000 and interim report available to Mr. Betgiri, why did he dump the responsibility of further investigation to the assessing officers as stated in his letter dated 19-9-2000 addressed to the undersigned. (It is like asking physician to do the work of pathologist or surgeon).
(e) Why Mr. C.M.Betgiri did not want to assign investigation to his subordinate along with the assistance of Mr. R. Diwedi who had already become conversant with the case and understand the intricacies of four companies in view of the statement recorded on 10-5-2000.
(f) How come Mr. C.M, Betgiri as DG expected various assessing officers t take intiaitive and coordinate simultaneously with other assessing officers to carry simultaneous investigation . Mr. C.M. Betgiri had adequate experience to understand the human psychology that there is resistance to finish the task started by others.
(g) What precautions did he take in the interest of revenue that assurance
(h) given to me by him vide his letter dated 19-9-2000 was going to be honoured by the assessing officers and reported to the DG’s office within reasonable time limit.
(i) How is that immediately after telegram on 15-9-2000 to Mr. C.M.Betgiri, the registered office of Rupmanglam under the signature of Mr. Jalundhwala got transferred to Baroda address as per the ROC records. It appears that there is collsion with Dhanyuhsya and the auditor of Rupmanglam.
(j) How come Mr. V.D.Wakharkar, the new Director General of Income Tax,-Investigation, did not review the decision of assignment to the assessing officers in light of my letters dated 3-10-2000 and 23-10-2000, when a lay man like me can understand the shortcomings. This shows that he was also in collusion with Dhanyuhysa, Jalundhwala, Kashiparekh to avoid further investigation. Incidently, Mr. Wakharkar was working under Mr. C.M.Betgiri.
(k) Why Mr. Wakharkar was complacent to my further letters dated 30-10-2000, 27-11-2000 and telegrams dated 14-12-2001 and 4-1-2001 in light of my comments on involvement of Global TRUST BANK FRAUD. In fact such issues should make him more vigilant to act. Had he taken, necessary action, further scandals involving Global Trust Bank which shook the financial markets would have been nipped in the bud.
(l) Even when I had complained about the harassment by the assessing officer vide my letter dated 4-6-2001 addressed to Mr. Wakharkar on account of reassessment notice, how come ignored to give a detailed reply and take necessary steps to record the statements.
(l) Even when shortcomings and defects of working of the department were highlighted through my letter addressed on 2-7-2001 and copy of this letter marked to Director of Investigation, Mr. Vijay Ranjan on 4-7-2001 and discussed thereafter with Mr. Vijay Ranjan and Mr. Wakharkar,how come, in the interest5 of revenue, the matter was not handled by the investigation department for effectiveness.
(m) Pursuant to my letter dated 26-7-2001 to the Investigation department , What were the findings of the Appropriate Authority and action taken keeping view the annexures given on 10-5-2000 to DDIT , Mr. R.Diwedi.
(n) What prompted Mr. N.P.Gangadharan,ward 8(3) and JCIT to reopen the Assessment of A.Y. 95-96 and A.Y. 96-97. In view of notice issued on 31-5-2001, whether the notice was issued to harass me. What efforts were made by him to collect the necessary information prior to the issue of notice which was against me and my family. I reserve to make additional comments at a later stage.
(n) what are the findings by Mr. R.Nabar , J.C.I.T assessing Dhanyuhsya in response to my letter dated 29-10-2001 and reminder letter dated 24-1-2002 and whether he has collected necessary evidence and has taken any action in the interest of revenue in view of illegal ownership of property owned by Dhnayushya.
(o) What prompted Mr. N.M.Parmar, ward 11(2) to carry reassessment based On presumptions and did not bother to collect necessary evidence of ownership of shares by interrogating J. Jalundhwala and the auditors of
Rupmanglam,,m Flovin and Dhanyushya by exercising his powers to visit their offices in case they were not extending cooperation in interest of justice and fairness to me and my family members by raising huge capital gains tax demand even when Dhanyuhsya balance sheet 96/97 did not reflect the ownership of the shares and reported to DDIT.
(p) Why Mr. N.M.Parmar, has accepted identical valuation of shares alleged be transferred in 1996 and 1998. I am of firm belief that he is in collusion with Mr. Kashiparekh who has been handling files for my brother’s family for the shares shown to be transferred in March 1998. He has not probedthe matter to find the truth.
4. I humbly request your Honour to seek findings, report and action taken report from the Investigation department pursuant to annexures submitted on 10-5-2000 as narrated in my letter dated 11-5-2000 in light of commitment given vide
Sept 19-9-2000 by Mr. Betgiri pursuant to my letter dated 18-6-1999.
5. In case, no concrete findings been carried out by Mr. Betgiri and Mr.Wakharkar, it is my humble request that present MEMBER-INVESTIGATION is called to furnish the findings by collecting all necessary evidence including MINUTE book records from Mr. Jalundhwala, auditors of Rupamanglam/Flovin and Dhanyuhysa immediately on receipt of this letter. I have already written to present Director General of Income Tax-Investigaqtion, Mr. Roongta on 23-1-2002 to take concrete steps to recover tax from Dhanyuhysa and black lsit the auditors involved. This information is necessary in the interst of revenue as well as natural justice to me.
6. I would like to draw the attention that in the suit filed by me on Dhanyuhysa, Jalundhwala, Core Health Care and Global Trust Bank, they have not been able to produce evidence of ownership of the immoveable property and shares where they have managed to avail term loan of Rs 12.5 crores.
I would be happy to provide additional information and clarification as and when necessary. I would appreciate that the present letter is acknowledged and complaint number is assigned.
Thanking you.
Yours faithfully,
P S. Mody
Enclosure marked to the Central Vigilance Commission:
My letters dated :18-6-1999,11-5-2000, 24-7-2000, 3-10-2000,23-10-2000, 30-10-2000,27-11-2000,4-6-2001, 2-7-2001, 4-7-2001, 26-7-2001,29-10-2001,23-1-2002,24-1-2002.
My telegrams dated 15-9-2000,14-12-2000, 4-1-2001, 20-1-2001 and 15-3-2001.
Copy of letter addressed to P S Mody on 19-9-2000 by Mr. C.M.Betgiri,
The Director General of Income Tax.
Above letter dated 3-3-03 was also addressed to Chief Commissioner of Income Tax . Income Tax Department, Aaaykar Bhavan, Ahmedabad.
The said letter covered up particulars previous correspondence and telegrams to the office of the Director General of Income-Investigation pursuant to the reply given by predecessor Director General of Income Tax =Investigation vide letter
No dated September 19,2000.
From:
GOVERNMENT OF INDIA
DIRECTORATE OF INCOME TAX(VIGILANCE), WESTERN REGION
ADDITIONAL DIRECTOR OF INCOME TAX(VIGILANCE)-II
AAYLKAR BHAVAN,MAHARSHI KARVE ROAD,MUMBAI-400 020
TELEFAX-2001275(direct)/2039131 Extn 2347(general)
CONFIDENTIAL
F.NO.DIT(V)(W)/CON.166/U-II/2002-108
Dated 18-10-2002
PANKAJ S. MODY
JANMANGAL APT
2ND FLOOR
40BMM SOCIETY
AHMEDABAD 380 006
SIR,
1. This office has received your letter dated 3-6-2002 addressed to the Central Vigilance Commissioner (CVC), containing allegations against senior officer’s of the Income-Tax Department.
2. You are requested to please confirm the complaint. While confirming, you can send a copy of the complaint if you have kept one Any evidence/document in support of the allegation should also be enclosed. You are also free to see the undersigned on any working day with prior appointment in Room No. 347, 3rd Floor, Aaaykar Bhavan, M.K.Road, Churchgate, Mumbai 400 020 with the copy of the said complaint.
3. I may assure you that your meeting with the undersigned shall be kept in secret confidence.
4. In case the alleged complaint has not been made by you, I shall be obliged if you will be kept enough to state the same through a letter within a week of receipt of this letter.
Yours faithfully,
J.B. MOHAPATRA
ADDITIONAL DIRECTOR
OF INCOME TAX(VIG).-II,MUMBAI
BY SPEED POST AD
From:
PANKAJ S. MODY
C/O SHRI S.S. MODI
2ND FLOOR
JANMANGAL APT
40 BMM SOC
AHMEDABAD 380 006
EMAIL ID: psmody@indiatimes.com
Oct 31,2002
To
THE ADDITIONAL DIRECTOR OF INCOME TAX (vig)-II
ROOM NO 347, 3RD FOOR
AAYKAR BHAVAN
MAHARSHI KARVE ROAD
MUMBAI 400 020
FAX NO 200 1275
SIR,
FOR KIND ATTENTION: SHRI J.B.MOHAPATRA
REFERENCE FILE: F.NO DIT(V) (W) CON.166/U-II/2002-108
LETTER DATED: 18-10-2002
=================================================
This is in reference to your above CONFIDENTIAL letter in connection with my complaint letter filed with Central Vigilance Commission.
2. I confirm that I have written letter of complaint dated 3-6-2002 to Central Vigilance Commission and I am enclosing copy of letter addressed to Central Vigilance Commission.
3. I am intrigued that Central Investigation has officially designated the Income Tax department to conduct detailed inquiry. I would appreciate to havce copy of their reference letter for my satisfaction as I have not received any communication from them in this regard that the probe would be handled by your office. I would appreciate that you furnish reference file with Central Vigilance Commission.
4. I am enclosing letter addressed to Director General of Income Tax Investigation addressed to him on 10-6-2002 and I have reason to believe that he has not conducted further inquiries in view of the letter. Before conducting any meaningful vigilance inquiry it is necessary that the investigation is completed so as to secure complet evidence and recording of statement.
5. In light of para 4, you direct Mr. Roongta to submit result of findings pursuant to my correspondence till date covering the spirit of letter dated 23-1-2002 ,3-6-2002 and 10-6-2002 within next ten working days of receipt of this letter for sake of efficiency and effectiveness. In case, Mr. Roongta does not take initiative on your instructions, you immediately launch vigilance inquiry on Mr. Roongta for being in collusion with the auditors,etc.
6. In order to maintain conducive, free and relaxed atmosphere for vigilance inquiry , you specifically instruct Additional Commissioner of Income Tax, Range 11 (Mr. M.H.Pandav, AHMEDABAD phone 6584535 ,resid 6748167} to withhold any coercive measures for tax recovery by the tax recovery officer Mr. James Kurien- Range 11 and thereby harass me by not staying the demand in light of my letter dated 17-10-2002 addressed to him which specifically covers the mischief of the assessing officer Mr. Parmar in collusion with the auditor Mr. Hemant Kashiparekh. I have reason to believe that Mr. Roongta has intiated steps for harassment against me in view of my complaint to the vigilance commission and subtle threats during the meeting on 25-6-2002 through the assessing officer. Range 11 and their supporters. In case Mr. Pandav does not initiate steps to conduct inquiry on Mr.Kashiparekh in light of my letter dated 17-10-2002 addressed to him , you shall launch immediate inquiries against him on grounds of tacit collusion with the auditors and denying fair justice and equity to me. Kindly confirm whether you are initiating steps to restrain them.
7. I have strong reason to believe that the matter has been leaked immediately after my telegram on 15-9-2000 to Director General Of Income Tax-Investigation which has led to the amalgamation of the companies involved to stall further investigation in view of the instruction of further investigation was passed on to the assessing officer as per the letter dated Sept 19,2000 issued by the Director General to the undersigned.
8. In case, Mr. Wakharkar had promptly followed up based on the contents of my letter dated Oct 30,2000 the scandal which involved Ketan Parekh, Global Trust Bank which rocked the stock market would not have taken palce at all in view of the information annexed at the time of my statement recorded on 10-5-2000 by DDIT unit I (IV).
9. I urge you to have a time bound programme for conducting inquiry otherwise this inquiry has no meaning at all.
10. It would be more meaningful and fruitful, if you come to Ahmedabad, understand the facts of the case with Mr. R. Diwedi , Investigating familiar with the case, record the statement of Director General of Income Tax –Investigation, Mr. Roongta and discuss the matter with me in person, intimating time and pace where you can be contacted in Ahmedabad. This is the only way you would be able to pull up the working of the investigation department. In case this is not done, I hardly see that any informant would be willing to share valuable information. At the moment, I am not in a position to come to Bombay at all.
11. A copy of this letter is faxed to you while original with annexures is being sent separately by post which may take some time for you to receive on account of postal holidays and diwali vacation.
12. Kindly acknowledge receipt of this letter. Please note my email Id. psmody@indiatimes.com
Thanking you.
Yours sincerely,
P S MODY
ANNEX: 1) LETTER DATED 10-6-2002 ,25-6-2002
2) LETTER DATED 17-10-2002
3) COPY OF LETTER ADDRESSED TO CENTRAL VIGILANCE
COMMISSION 3-6-2002
