Tax raids turn heat on education barons

Deshmukh is involved with the N.K.P. Salve Medical College in Nagpur and Rao runs the Kavi Kulguru Institute of Technology and Science in Ramtek.

When contacted, Minister Kadam told The Indian Express: ‘‘I do not have anything to say. I am in Mumbai for the Assembly session.’’

The I-T swoop, which the department claims has so far yielded Rs 10 crore in FD receipts, comes at a time when the Vilasrao Deshmukh government is locked in a bitter dispute with private medical and engineering institutes over the fee structure.

Some colleges have even threatened to shut shop from the next academic year if the Supreme Court directs them—the verdict is expected on Friday—to accept a state government panel’s recommendations on the fee structure.

According to I-T Director-General (Investigation) Shiv Kumar Sharma, ‘‘We had received information that although these institutions were charitable trusts, they were accepting donations while giving admissions for engineering and medical courses. We had put them on surveillance for the last few days and had sent decoys. When our information was confirmed, we decided to take action.’’

Sharma said the I-T Department, which kept the Union Finance Ministry in the loop about the operation, has reason to believe that donations of Rs 25 lakh to Rs 30 lakh were being accepted per seat in these medical colleges. The department, he added, will also probe the finances of those who paid the donations.

Today’s raids, involving over 400 I-T officials, were conducted in the offices, colleges, business units and homes of the trustees of the institutes. Homes of some middlemen were also raided.

The operation, which began around 8.30 am, went on throughout the day. I-T officials raided 40 places in Pune, six in Kolhapur, 16 in Thane and three each in Mumbai and Nagpur.

Sharma said among the seizures were documents and FD receipts, adding that the seized documents would now be examined to ascertain the tax liability after which penalties will be levied.

On the hitlist

• Bharati Vidyapeeth: Patangrao Kadam, Cooperative Minister and CM aspirant

• MIT College: V D Karad, govt professor with high-level contacts

• D Y Patil College: D Y Patil, father of Congress MLA Satej Patil

• N K P Salve Medical College, Nagpur: Ex-MPCC chief Ranjit Deshmukh

• Kavi Kulguru Kalidas College of Technology and Sciences, Ramtek: Ex-Cong RS MP V Rajeshwar Rao, related to former PM late P V Narasimha Rao