Income Tax sleuths smell blood in fabled MoUs of Gujarat

The Gujarat government has so far claimed that MoUs worth Rs 20 lakh crore were signed during the summit this year alone.

“Jealous central government and state Congress are not happy with the huge success of the 2011 summit. To threaten the investors now through the Income Tax department,they have sent us a notice to disclose details of all MoUs worth more than Rs 1,000 crore,” Patel said in the Assembly on Tuesday.

Anurag Sharma,Deputy Director of Income-Tax (Investigation),in Ahmedabad,sent the notice to state Industries Commissioner on February 17. “An inquiry is pending in this office. In connection with the same,the details of MoUs signed by various corporate entities with the Government of Gujarat need to be examined. Therefore,you are requested to kindly make arrangements for providing the copies of all such MoUs (worth more than Rs 1,000 crore) signed in the Vibrant Gujarat Summit held on January 11-12,2011 and also the last year. The details of actual investments made by these corporate entities viz-a viz the promised investments as per the MoUs signed last year must also be supplied,” the notice said.

Patel alleged the Gujarat government was being singled out by the I-T department. “Other states also signs MoUs worth thousands of crores of rupees with private companies. Why is Gujarat alone being targeted by the I-T department? Is I-T department seeking similar details in other states? According to my information,some leaders of Opposition in Gujarat have requested the government of India and the I-T department to harass the investors who come to Gujarat,” he said.

Shaktisinh Gohil,Leader of the Opposition in the Assembly,was quick to counter Patel. “Since the BJP is talking of a nationwide campaign against black money,it should not be scared of an I-T notice for inquiry.

Income Tax sleuths smell blood in fabled MoUs of Gujarat

An organised racket of land grabbing is going on in the state in the name of MoUs. BJP leaders are protecting land sharks,” he said.

It’s a scare tactic,says BJP In Delhi,the central BJP reacted sharply to the reports of an I-T notice to the Gujarat government,saying it was the handiwork of the UPA government to create a “scare” among investors going to Gujarat.

“It is politically motivated. The UPA government is trying to scare investors and send a message to them so that they don’t go to Gujarat. The notice shows the vindictive attitude of the central government against Gujarat’s development,” BJP leader S S Ahluwalia said.

Ahluwalia said “no foreign investment can take place in any part of the country” without the knowledge and permission of the Foreign Investment Promotion Board,which must be having necessary details.

The BJP parliamentary party,which met today,also discussed the development. Sources said L K Advani told party MPs that the notice was an attempt to scare Gujarat-bound investors. Ahluwalia said he would not be surprised if a showcause notice is issued to General Officer Commanding (GOC) of Golden Katar Division,Major General I S Singha,who had praised Modi on Monday.