The decision was taken yesterday after proceedings for the assessment years 1994-95 and 1995-96 were reopened. Sources said that according to investigations made so far, a substantial amount could be collected as tax from the trust.
The premises of the ashram were raided by the income-tax sleuths on Friday last week (October 1), apparently in connection with its investigations into the accounts of the beneficiaries of the urea scam.
The trust had been created on July 18, 1980, ostensibly for the purpose of carrying out charitable activities. Later, while the assessment of 1988-89 was under progress, it was found that the trust was not carrying charitable activities and that the trust property was being used by Chandraswami for his personal purposes.
After these facts came to light, the government decided to withdraw the tax exemption granted to the charitable trust. Later, a tax demand of Rs 61.69 lakh was raised after completion of assessment for the years between 1988-89 and 1993-94. Since the trust failed to clear the tax arrears, the I-T authorities decided to attach the bank accounts where Rs 18.70 lakh was found.The I-T authorities have also passed on to the Central Bureau of Investigation (CBI) information regarding the foreign donors, the veracity of which is in the process of being verified. Sources said inquiries made with governments of several other countries have revealed an alleged criminal nexus between the donors and the trust. Among the other members of the Trust are Chandraswamis confidante Vikram Singh and promoter of Apollo Hospitals Pratap Reddy.
Chandraswami is at present facing a number of criminal charges of cheating in the Lakhubhai Pathak case, forgery and fabrication of evidence in the St Kitts case, a number of cases of Foreign Exchange Regulation Act violations apart from tax evasion charges, courtesy the trust floated by him.
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The Supreme Court has been monittoring the progress being made in the prosecution case against the high-flying tantrik, who is widely believed to be former Prime Minister Narasimha Raos religious guru.
In fact, Rao and Chandraswami and co-accused in both the Lakhubhai Pathak cheating as well as the St Kitts forgery cases.
Godman granted bail
Our Law Correspondent NEW DELHI
The Supreme Court yesterday granted bail to godman Chandraswamy and his aide Kailash Nath Aggarawal alias Mamaji in the Lakhbhai Pathak cheating case, subject to strict conditions. They shall not leave the country and not make any attempt to contact any of the prosecution witnesses directly or through any other person. They shall not try to tamper with the evidence or influence any witness in any case against them.
If they want to go out of Delhi, they shall give prior information to the CBI about their programme, including the places and addresses where they can be contacted during the period.
According to the short order passed by a division bench presided over by Chief Justice A M Ahmadi, the accused shall cooperate in the early completion of the trial and shall attend the hearing unless exempted.
They shall also appear before the concerned CBI officer or any other governemnt agency whenever required in connection with any crime or matter under investigation.
The Supreme Court thus set aside the Delhi high court order denying bail to the two persons. They have been denied bail by different courts eight times since they were arrested on May 2.
They have to furnish bail bonds for the sum of Rs one lakh each with one surety in like amount each.
The accused were charged with cheating on a complaint filed by Pathak, the pickle king of UK. The offence allegedly took place in 1983. It is stated that the accused claimed that they weilded influence with the government leaders and promised to get lucrative contracts. Pathak claims that he had paid one lakh dollars on the promise of the godman.
It is in this case that former Prime Minister Narasimha Rao has been implicated by Pathak. The trial is going on in Vigyan Bhavan here before judge Ajit Barihoke.