The department has also written to the Punjab government, seeking details of the mining contract bagged by four ex- employees of the minister.
"An inquiry into the mining contract awarded to four persons whose names have appeared in newspaper reports, has been initiated but it is at preliminary stage now," an income tax official said today.
Opposition parties, the AAP, the SAD and the BJP, have been demanding sacking of Rana, the state power and irrigation minister, for allegedly acquiring sand and gravel mines through "benaami transactions in the name of his former cook and staff".
A two-day e-auction of sand mines in Punjab had culminated with bids worth Rs 1,026 crore secured for 89 mines.
Also Read
"It is the money of Rana Gurjit Singh who pumped it through his four former employees to get the mining contracts in Punjab," AAP MLA Sukhpal Khaira had alleged.
Khaira had also showed the copy of the purported income tax return of Bahadur, one of the minister's former cooks, to the media.
"As per income tax return for the financial year 2014-15 of the former cook, his income was about Rs 95,000. He was getting a salary of just Rs 11,706 per month. With such meagre income, will a cook be able to bag a mining contract of Rs 26 crore," Khaira had asked.
However, Rana had denied the charges, saying neither he nor his company, Rana Sugars Limited, had any direct or indirect stakes in sand mining business.
"The fact that some of my former employees reportedly bid for the mines does not in any way imply that I have interests or stakes in the business," he had said.
"There are thousands of employees who have worked with me and left from time to time and I cannot be held accountable for what they do after leaving my companies," he had said.
Disclaimer: No Business Standard Journalist was involved in creation of this content