The Income Tax Department today launched nationwide search operations covering nearly 50 locations to probe alleged financial irregularities in projects related to the recently held Commonwealth Games.
Searches were conducted in Bangalore, Mumbai, Jamshedpur, Kolkata, Delhi and other parts of the National Capital Region, officials said.
The focus of the investigation was on four main contractors who were associated with the Organising Committee’s contracts for landscaping and beautification work at the venues, changing of street lamps, laying field tracks and also in the business of sports equipment and gear.
While officials in the department refused to disclose names of the contractors, one of the agencies was MBL Infrastructures (MBL), based in Kolkata. The Ram Gopal Maheshwari-led firm was involved in several projects during the Games, including construction of under bridges, streetscaping and beautification of roads around the Thyagaraj Sports Complex, Siri Fort Complex and R K Khanna Tennis Stadium, Dr Karni Singh Shooting Range, JLN Sports complex and IGI Stadium.
MBL Infrastructures, formerly known as Maheswari Brothers Ltd, is listed on the Bombay Stock Exchange and had an initial public offer last year.
The raids were part of the department’s nationwide searches on the offices of companies associated in receiving CWG contracts, to unearth unaccounted income or attempts to suppress profits.
Last week, the tax department had conducted searches on the premises of some contractors who had foreign links including on the offices and the residence of Bharatiya Janta Party member Sudhanshu Mittal. He was associated with PICO International and Deepali Design, which had bagged large contracts.
Today’s operations included seizure of certain documents related to the contracts awarded by the Organising Committee. In addition, tax returns filed by the contractors are also being looked into by the tax authorities.
Apart from the Income Tax Department, the Comptroller and Auditor General (CAG), Central Vigilance Commission, Enforcement Directorate and a committee headed by former CAG V K Shunglu are investigating financial transactions related to the event.
