New Delhi, April 19 (Inditop.com) The government has ordered parallel probes by virtually all its economic intelligence units to determine the source and use of funds by franchises of the Indian Premier League (IPL) and unearth possible tax evasions and flouting of rules.
“I can assure you that all aspects of IPL will be probed, inclusive of the sources of funding, how the funds were routed and invested,” Finance Minister Pranab Mukhererjee told the Lok Sabha Monday.
“I can assure the honourable members that no guilty or wrong-doer will be spared,” he said Monday, the day when an official communiqué from the Rashtrapati Bhavan said that President Pratibha Patil had accepted the resignation of Shashi Tharoor as minister of state for external affairs.
A probe by the tax department had first started with the Kochi franchise of IPL after a major political row last week on allegations that Tharoor’s friend Sunanda Pushkar had received free equity the company called Rendezvous Sports World.
After that, officials from the income tax department visited the various offices of IPL in Mumbai and questioned its commissioner Lalit Modi. Based on the documents collected, the tax probe was then extended to other cities as well.
Now, all the wings of the finance ministry have been roped in, officials said.
“Parallel investigations will now be made by four of our agencies. This will be coordinated by the Central Economic Intelligence Bureau,” a senior official in the finance ministry said.
“As a matter of principle we will be probing every person who may be involved – whether directly or indirectly. A host of issues may be involved, service tax, black money, corporate tax, misuse of incorporation status,” the official added.
The agencies involved are the Directorate of Revenue Intelligence on illegal overseas transactions, Directorate of Enforcement on foreign exchange offences, Directorate of Anti-Evasion on service tax offences and the Directorate of Income Tax Investigation.
Finance ministry officials said their main concern was whether black money stashed abroad was being brought back into the country illegally, as also whether there has been tax evasion by IPL and its franchisees.
Accordingly, all 10 franchises of IPL are under scrutiny — Rendezvous Sports, Sahara group, Mumbai Indians, Delhi Daredevils, Kolkata Knight Riders, Royal Challengers Bangalore, Deccan Chargers, Chennai Super Kings, Rajasthan Royals and Kings XI Punjab.
rounak