IT case against fodder scam approver stayed

The Supreme Court on Friday removed a crucial hurdle in the prosecution of the multi-crore fodder scam in Bihar when it stayed the income-tax proceedings against the key witness and approver, Dipesh Chandak.

He was given immunity from criminal cases on his turning approver for the CBI. However, recently the income-tax department started action against him.

This would have stopped him from disclosing the details he was expected to give to the CBI. The prosecution of the accused persons, including Railway Minister Lalu Prasad, would be endangered if he shuts up.

The court's stay of the trial of Chandak in income tax cases, till the disposal of the fodder scam, averts this possibility.

The Supreme Court Bench comprising Justice SN Variava and Justice AK Mathur stated that if Chandak made a full disclosure in the fodder scam case, he could make a fresh application for quashing of the income tax case against him. If the CBI found that he was not making a full disclosure, it would be at liberty to withdraw the pardon granted to him.

Then the income tax department could also prosecute him. Chandak was charged for filing incorrect returns. He was the bulk supplier of fodder and he knew the whole fraudulent operations that went on for years during Lalu's chief ministership.

The central government was in a dilemma in the Supreme Court for some months as two of its arms were at loggerheads on their attitude towards Chandak. While the CBI had let Chandak off the hook for turning approver in its favour, the income tax department was after him for filing false returns regarding the fodder transactions. The income tax proceedings were initiated 16 months after the CBI got him in his favour in 1998.

Chandak had moved the Supreme Court against the income tax proceedings nearly two years ago, but the former central government had repeatedly told the court that the CBI and the income tax department would come up with a joint formula to solve the tangle.

The apex court had granted more than ten adjournments on the promise of the then Solicitor-General and the CBI counsel.

After the new government came to power, the income tax department apparently wanted to pursue the case against Chandak. This would have sounded the death knell of the fodder scam trial. The Supreme Court order today virtually gives a green signal for the prosecution of the fodder scam accused.