The Income-Tax (I-T) department has launched an investigation into the alleged unaccounted assets of former Union ministers Buta Singh and S Krishna Kumar, whose names allegedly figure in the multi-crore hawala scam.
I-T sources said that the department issued show-cause notices last week to the two former ministers, seeking explanation for the undeclared assets, investments and holdings by them and their family members.
Stating that the two former ministers had been given 10 days to file their reply, which was to expire by early next week, the sources said that if they failed to reply, proceedings would be launched against them for recovery of the tax penalty on an income assessment of about Rs 5 crore each.
The I-T officials had carried out searches on the premises of the two former ministers on November 6 in connection with the hawala scandal.
The I-T decided to launch a separate probe into their assets after these raids besides probing their alleged link in the hawala scam, the sources said.
The tax officials also raided the premises of former Gujarat chief secretary H K Khan and Pradeep Singh, grandson of former Deputy Prime Minister Devi Lal.
The countrywide searches were launched simultaneously at Delhi, Solan, Gurgaon, Faridabad, Ahmedabad, Bangalore, Panaji, Trivandrum, Madras and Kochi.
Admitting that he had received a questionnaire from the department, Krishna Kumar said that he was in the process of answering them. There is always a difference of perception between people and the tax department,'' Kumar said and hoped that his reply would satisfy the tax department.
Family members at Singh's residence said he was out of station. The I-T sources claimed that scrutiny of documents seized during raids on Krishna Kumar and his relatives had indicated alleged substantial investments and
