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CWG scam: Finmin issues notices for Rs 240 crore

Statesman News Service |

press trust of india
New Delhi, 2 September
The Finance Ministry has issued tax demand notices of at least Rs 240 crore to some private companies and individuals who were involved in the conduct of 2010 Commonwealth Games-related projects here after the CVC detected huge tax evasion.
Besides, a recovery of about Rs 108 crore on account of service tax and workers welfare cess has been also made from them by the authorities, according to annual report of Central Vigilance Commission (CVC) for 2012, which was tabled in the Parliament recently.
“The Commission while scrutinising the details of the various projects, provided by the organisations, observed non-conformance of statutory tax obligations also and decided to take up the issue with the authorities concerned.
“The initiative taken by the Commission in collaboration with the Labour Department resulted in recovery of an amount of Rs 41.8 crore towards workers welfare cess,” the report said.
The Central Board of Excise and Customs (CBEC), under the Finance Ministry, has informed that service tax has been recovered to the tune of Rs 67.33 crore so far, which includes Rs 52.21 crore on the basis of the Commission’s inputs, it said.
“It has also been informed that demand notices have been issued to the tune of Rs 240.77 crore. The reconciliation process with various departments or organisations regarding tax non-compliance issues concerning CWG 2010 is underway,” the report said.
The CVC had detected huge tax evasion by certain private entities while executing works for the sporting extravaganza held here in 3-14 October, 2010.
The Chief Technical Examination (CTE) wing of the Commission conducted intensive technical examination of some of the major projects or contracts relating to the Games to ensure adherence to the desired quality in execution and to unearth the shortcomings or lack of appropriate standards in the projects.”A total of 30 projects or contracts, valued at RS 3,500 crore
The Chief Technical Examination (CTE) wing of the Commission conducted intensive technical examination of some of the major projects or contracts relating to the Games to ensure adherence to the desired quality in execution and to unearth the shortcomings or lack of appropriate standards in the projects.
“A total of 30 projects or contracts, valued at RS 3,500 crore, approximately, were taken up for technical examination, from 2008 onwards,” the report said.
Further, a number of complaints questioning the quality of works executed and justifiability about the cost escalation were also received.