Robert Vadra summoned by ED in land deal case
The Enforcement Directorate on Friday summoned Robert Vadra in a land deal case. This decision of the ED comes hours after an Indian Express report claimed that Vadra was given loan by a company at a higher cost for buying land in Bikaner. This loan helped the businessman to evade taxes and got a huge relief from Income Tax Settlement Commission.
After report is released, Vadra cries conspiracy
After the explosive investigative report, Vadra, who is the husband of Priyanka Gandhi and Congress President Rahul Gandhi's brother-in-law, said it was BJP's attempt to distract people from their governance failures. He said whenever BJP was questioned about Rafale or other promises, his name was dragged. He said most of the matters that have been raised are sub-judice.
Vadra issues clarification
"A flurry of media queries are suddenly being sent to me based on entirely false allegations probably being leaked by the government as polling day in Rajasthan comes close!! Interestingly, most of the issues arising thereof happen to be sub-judice," Vadra said.
Understanding what the case is all about
Reportedly, Bhushan Power & Steel Limited (BPSL) had given a loan of Rs. 5.64 crore in 2011-2012 to Allegeny Finlease Pvt. Ltd, a Delhi based firm. Allegeny Finlease Pvt. Ltd then bought land in Bikaner on behalf of Sky Light Hospitality, a company owned by Vadra. The ED has asked the settlement commission to furnish details in this matter.
BPSL's earnings grew a lot in a decade
Notably, in December 2011, the I-T department sent a show cause notice was sent to BPSL regarding an increase in its income. From financial years 2004-05 to 2011-12, the company's income increased to the tune of Rs. 800 crore. BPSL then filed a counter-complaint and the income tax panel passed an order acknowledging it. The decision taken by the commission favored BPSL immensely.
Settlement Commission's order helped BPSL
The Settlement Commission then reduced the quantum of income addition for BPSL to Rs. 317 crore. Apart from this, it also, allegedly, gave the firm immunity from a penalty. About this decision, Akhilesh Prasad, Chairman of the Settlement Commission told IE, "It's been more than five years since that order was passed. It was a long time back and I don't remember its details."
