PIL alleges Sales Tax scam of Rs 100 cr- Business News
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PIL alleges tax scam of Rs 100 cr

The Bombay High Court has asked the Maharashtra government's Principal Secretary to file an affidavit by October 8 in response to the PIL.

 PTI   
  • Mumbai,  October 6, 2010  
  • |  
  • UPDATED   17:42 IST

The Bombay High Court has asked Maharashtra government's Principal Secretary (Finance) to file an affidavit by October 8 in reply to a public interest litigation (PIL), alleging scam in refund of Sales Tax to the tune of crores of rupees, in Palghar division of Thane district.

The PIL also alleged that fraudulent claims of five per cent interest subsidy, in terms of loan under the textile package scheme announced by the state government, had been made in the scam, running into more than Rs 100 crore.

Demanding a CBI enquiry, the PIL demanded arrest of sales tax officers and dealers involved in the fraud, under the Maharashtra Control of Organised Crime Act (MCOCA).

A bench headed by Justice B H Marlapalle asked the petitioner, Surinder Arora, a Thane-based businessman, to make the DIG and Senior Inspector of Palghar as respondents.

The PIL alleged that local dealers had manipulated bank statements, records, invoices and documents with the help of Sales Tax consultants and a syndicate of Sales Tax Officers involving syphoning off more than Rs 100 crore.

The PIL said investigations being carried out by Economic Offences Wing of Palghar police in respect of the alleged scam may be transferred to the Central BUreau of Investigation.