I-T raids trigger fresh political storm in Raj

THE FINANCE MINISTRY DENIED THAT THE RAIDS WERE POLITICALLY MOTIVATED. THE BJP HAS SAID IT IS NOT INVOLVED IN THE DRAMA PLAYING OUT IN RAJ

NEW DELHI/JAIPUR : As a political drama in Rajasthan played out on Monday, following deputy chief minister Sachin Pilot’s revolt against chief minister Ashok Gehlot, the Union government seemed to deal itself a hand in the game with the Income Tax department and the Enforcement Directorate conducting raids on several companies and individuals linked to Gehlot and his associates or the Congress itself.

While the finance ministry denied that the raids were politically motivated, people familiar with the matter said everyone raided has links with the CM. The Bharatiya Janata Party (BJP) has said it is not involved in the drama playing out in Rajasthan.

The I-T department carried out “search and survey operations on three groups” at 20 premises in Jaipur, six in Kota, eight in Delhi and nine in Mumbai, according to the government.

One of the groups is involved in business activities such as hotel, hydro power projects, metal and auto sectors. “It is suspected to have invested unaccounted income generated from these activities into real estate,” a government statement said.

It added that the second group is engaged in the business of trading of silver/gold jewellery and antique silver articles, and has associate enterprises in other countries. The third group is involved in hotel business, it said.

Among those raided were Rajiv Arora of Amrapali Jewels, who is also the vice president of the Congress in the state; the Om Kothari Group, which has interests in engineering, construction, real estate, automotive dealerships, and manufacturing; and Mayank Sharma Enterprises.

A tax official said on condition of anonymity that the “department received information of tax evasion worth crores of rupees. At present, a team of 100 officials are carrying out searches at more than 22 locations linked to Dharmendera Singh Rathore and Rajiv Arora.” “Rathore is All India Congress Committee Member and former chairman of Rajasthan Seeds Corporation,” said a Congress functionary requesting anonymity.

Meanwhile, ED raided Jaipur’s Fairmont Hotel in the afternoon; Gehlot has housed around 100 MLAS loyal to him at the hotel. “The raids were initiated after it received information about violations of Foreign Exchange Management Act, 1999, rules. It is alleged that Ravikant Sharma received foreign funding worth ₹96.7 crores from Mauritius,” said an ED official who asked not to be named.

People familiar with the matter said the Mumbai-based Mayank Sharma Enterprises owns the hotel and alleged that one of its main investors, Sharma, is associated with Vaibhav Gehlot, son of Ashok Gehlot. BJP leader Kirit Somaiya claimed in 2013 that a Mauritiusbased company purchased the shares, having a value of ₹100, of Trion Hotels and Resorts of Sharma, at an absurd amount of ₹40,000 each while seeking a probe into the involvement of Vaibhav Gehlot in the affair.

The probe, IT officials said, pertains to tax evasion and some benami (proxy) transactions; raids were conducted after examining several documents over a period of time, they added.

A finance ministry official said: “Raids are being conducted by the income-tax department’s field formations based on inputs related to tax evasion... So, allegations of politically motivated raids hold no ground...”.

“The frontal departments of the BJP – IT and ED -- have come out in the field. When will CBI come?” Congress spokesperson Randeep Surjewala tweeted.

Om Kothari group’s flagship, Om Metals Infraprojects Ltd, the IT officials added, was raided in connection with transactions related to a contract given to it to build a dam in Rajasthan.

State BJP chief Satish Poonia said it was “mere coincidence that the raids took place today.”