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This is an archive article published on November 2, 2003

Stumped by taxman, these cricketers can do little but appeal

Cricket fever may be full blown across the country again but for these cricketers, the heat is getting uncomfortable. Kapil Dev may endorse ...

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Cricket fever may be full blown across the country again but for these cricketers, the heat is getting uncomfortable.

Kapil Dev may endorse products on TV, Ajay Jadeja may have returned to the Ranji circuit but along with several other cricketers smeared by match-fixing charges, they now have to listen to the persistent knock of the taxman on their doors.

Following nationwide raids on them by the
Income Tax Department in July 2000, Kapil, Jadeja, Mohammad Azharuddin, Manoj Prabhakar,
Ajay Sharma, Navjot Sidhu and Nikhil Chopra
have had their properties attached. Some have
had their bank accounts sealed and Azhar, for instance, has deposits of around Rs 30 lakhs still frozen.

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Last week, Prabhakar joined his former colleagues to file an appeal before the Income Tax tribunal in New Delhi. If they lose this round and don’t pay up, their properties will be auctioned, their bank balances for the year 2000 forfeited. Sidhu is the only one who claims to have won all his cases and got the taxman off his back. In his case, I-T officials have challenged the orders before the Tribunal.

I-T sources say that Kapil heads the list of defaulters of Operation Gentleman (the codename for the raids on cricketers). Estimated claim: Rs 2 crore. After several hearings, he began paying Rs 2 lakh a month but when he was confronted with his present income, he agreed to double the monthly payment. Contacted, Kapil said: ‘‘I’m contesting the cases but this is not public information about which I will talk to the media.’’

Jadeja has challenged the I-T demand but admits he has coughed up cash. His default was pegged at Rs 39 lakh. He got respite via a ‘‘substantial’’ relief from the Commissioner (Appeals) but is still said to have paid about Rs 12 lakh so far.

But the ‘‘curse,’’ he said, is far from over. ‘‘I have been personally visiting the IT offices 15 days in a month,’’ Jadeja told The Sunday Express. ‘‘These cases will drag on for another 15 years. Even after settling dues added to my cricket income, I will get notices for the six-year assessment period which has been opened. But I will fight, I hope to get all the money I paid refunded. With interest.’’

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Other Delhi cricketers aren’t so confident. Prabhakar, who runs a company manufacturing herbal products, faces a default suit of around Rs 42 lakh—his wife and relatives face suits as well. He says he doesn’t have the money to pay back even Rs 50,000 a month.

‘‘Until I was playing good cricket everyone respected me,’’ he said. ‘‘Now I am in the doghouse and if I lose in the tribunal, I run the risk of losing my house and bank balances which have all been attached. Is this how cricket heroes are treated in this country?’’

Former Delhi Ranji Captain Ajay Sharma is asking similar questions. An employee of the Central Warehousing Corporation, Sharma admits he hasn’t been able to pay back even a rupee to the IT Department.

I-T officials estimated his default to be Rs 53 lakh and attached his Vasant Kunj flat. For a few months, even one-third of his salary was being routed directly to the I-T authorities.

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Unfair, says Sharma’s lawyer Arun Bhardawaj, because the tax officials calculated his income ‘‘on the basis of what the bookies said they paid him without any recovery or proof.’’

Sharma says the tax demand has now been scaled down to Rs 34 lakh but if he starts paying arrears to the authorities, he will have nothing left to run his household.

Ritu Sarin is Executive Editor (News and Investigations) at The Indian Express group. Her areas of specialisation include internal security, money laundering and corruption. Sarin is one of India’s most renowned reporters and has a career in journalism of over four decades. She is a member of the International Consortium of Investigative Journalists (ICIJ) since 1999 and since early 2023, a member of its Board of Directors. She has also been a founder member of the ICIJ Network Committee (INC). She has, to begin with, alone, and later led teams which have worked on ICIJ’s Offshore Leaks, Swiss Leaks, the Pulitzer Prize winning Panama Papers, Paradise Papers, Implant Files, Fincen Files, Pandora Papers, the Uber Files and Deforestation Inc. She has conducted investigative journalism workshops and addressed investigative journalism conferences with a specialisation on collaborative journalism in several countries. ... Read More

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