After Ministry of Corporate Affairs, Income Tax department too has launched a probe to trace the source of funding of various firms that invested in BJP president Nitin Gadkari’s company Purti Power and Sugar Limited (PPSL).
‘We will trace the source the funds of the companies including the 18 companies that invested in Purti,’ a top IT official told PTI on condition of anonymity.
He said prima facie ‘shell’ companies (inactive firms used as a vehicle for various financial manoeuvres or kept dormant for future use in some other capacity) had pumped money into PPSL.
Sources in the department said a report would be submitted to the Central Board of Direct Taxes shortly.
‘We have already started gathering documents relating to these companies,’ they said, adding officials in the investigation wing of the department in Mumbai and Pune were involved in the probe.
Officials of the investing companies would be summoned in due course and, if needed, the BJP chief would also be asked to be present, the sources said.
Gadkari is at the centre of a raging controversy over funding of PPSL with media reports claiming that major investments and large loans to Purti were made by Ideal Road Builders (IRB) group, which had won contracts between 1995 and 1999, when the BJP chief was PWD minister in Maharashtra.
Media reports also claimed that shell companies were floated for making investments and their fake addresses were submitted to the Registrar of Companies.
On Tuesday, Corporate Affairs Minister Veerappa Moily had said that Registrars of Companies would inquire into the allegations.
On his part, Gadkari has denied the allegations and said he was prepared for a probe.
Amid allegations of dubious funding into the companies of Bharatiya Janata Party chief Nitin Gadkari, the Indian Corporate Affairs Ministry on Thursday said it is looking into investments made in his company.
‘The matter is being looked into,’ a senior Corporate Affairs Ministry official said. He was responding to a query on whether the Ministry has started probe into allegations of dubious funding into Gadkari’s company.
Embarrassing details have come out about the alleged dubious funding of Maharashtra-based Purti Power and Sugar Ltd, run by Gadkari.
On Tuesday, Corporate Affairs Minister Veerappa Moily had said that Registrars of Companies would inquire into the allegations.
CONG SLAMS BJP FOR DEFENDING NITIN
Launching a scathing attack on the BJP regarding the graft charges against Gadkari, Cong spokesperson Rashid Alvi said on Thursday said that though the main opposition party is continuously defending its president, the truth has come out. Alvi said the BJP has had a history of protecting the corrupt. He said,’Every party has a certain character and a specific ideology. The chief of that party represents that party and is the party’s face. Gadkari is the chief of the BJP. If he is neck deep in corruption and the BJP still allows him to hold the president post, then we can also recall that Bangaru Laxman whom the BJP tried continuously defend, was punished by the court.’
‘We will trace the source the funds of the companies including the 18 companies that invested in Purti,’ a top IT official told PTI on condition of anonymity.
He said prima facie ‘shell’ companies (inactive firms used as a vehicle for various financial manoeuvres or kept dormant for future use in some other capacity) had pumped money into PPSL.
Sources in the department said a report would be submitted to the Central Board of Direct Taxes shortly.
‘We have already started gathering documents relating to these companies,’ they said, adding officials in the investigation wing of the department in Mumbai and Pune were involved in the probe.
Officials of the investing companies would be summoned in due course and, if needed, the BJP chief would also be asked to be present, the sources said.
Gadkari is at the centre of a raging controversy over funding of PPSL with media reports claiming that major investments and large loans to Purti were made by Ideal Road Builders (IRB) group, which had won contracts between 1995 and 1999, when the BJP chief was PWD minister in Maharashtra.
Media reports also claimed that shell companies were floated for making investments and their fake addresses were submitted to the Registrar of Companies.
On Tuesday, Corporate Affairs Minister Veerappa Moily had said that Registrars of Companies would inquire into the allegations.
On his part, Gadkari has denied the allegations and said he was prepared for a probe.
Amid allegations of dubious funding into the companies of Bharatiya Janata Party chief Nitin Gadkari, the Indian Corporate Affairs Ministry on Thursday said it is looking into investments made in his company.
‘The matter is being looked into,’ a senior Corporate Affairs Ministry official said. He was responding to a query on whether the Ministry has started probe into allegations of dubious funding into Gadkari’s company.
Embarrassing details have come out about the alleged dubious funding of Maharashtra-based Purti Power and Sugar Ltd, run by Gadkari.
On Tuesday, Corporate Affairs Minister Veerappa Moily had said that Registrars of Companies would inquire into the allegations.
CONG SLAMS BJP FOR DEFENDING NITIN
Launching a scathing attack on the BJP regarding the graft charges against Gadkari, Cong spokesperson Rashid Alvi said on Thursday said that though the main opposition party is continuously defending its president, the truth has come out. Alvi said the BJP has had a history of protecting the corrupt. He said,’Every party has a certain character and a specific ideology. The chief of that party represents that party and is the party’s face. Gadkari is the chief of the BJP. If he is neck deep in corruption and the BJP still allows him to hold the president post, then we can also recall that Bangaru Laxman whom the BJP tried continuously defend, was punished by the court.’