30-10-2000 to Director General

Pankaj S Mody
C/o SHRI S S MODY
2ND FLOOR, JANMANGAL APT
BMM SOCIETY
AHMEDABAD 380 006
OCTOBER 30,2000

DIRECTOR GENERAL OF INCOME-TAX (INVESTIGATION)
AAYKAR BHAVAN, ASHRAM ROAD
AHMEDABAD 380 009


RESPECTED SIR,

SUB: INFORMATION REGARDING EVASION OF TAX –EVASION
YOUR REFERENCE LETTER: DG/AHD/INV/29/99-2000
DATED SEPT 19,2000

MY SUBSEQUENT LETTER: DATED OCT 3,2000 AND DATED OCT 23,2000
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1. Kindly refer to the above.
2. Your reply dated September 19/2000 confirms that the income tax department has atlast found truth in my age old allegations regaring evasion of tax by certain companies, directors,individuals,etc.
3. Sir, right from the day on which Mr. D N Kar , an ADI , WORKING under you started invstigation proceedings against me, I had promptly brought to his notice the details of tax evasion but unfortunately , for the reasons best known to him, he had adopted go-slow attitude and inspite of the fact that I had specifically informed him regarding the illegal transfer of immoveable property-Rupam Bunglow and the matter regarding valuation of shares of Private Ltd companies, he had neglected to garther the information eventhough he made a show of phoning Mr. Hemant Kashiparekh , chartered accountant and auditor to give valuation Ohd/hf shares. Sir, you will agree with me that when there is a question of tax-evasion worth crores of Rs, then there was no point of need to waste time for verbal communication because verbal communication is not an effective method of investigation. The proper course on part of that ADI was to send a written communication both to the chartered accountant Mr. Hemant Kashiparekh and to the persons (assesses) calling for specific details and by this method , he could have roped the tax dodgers. Sir, by this letter, I earnestly request your Honour to call for the records and check up yourself the extendt of negligence on the part of investigating officers working under youand fix the responsibility on them and inflict proper punishment for encouraging tax-evasion by adopting dormant attitude
4. Sir, by this letter , I specifically bring to your kind notice that the company namely Dhanyushya Finance Ltd have arranged loan of Rs 12.5 crores for Core Health care Ltd( already recoverey suits have been filed by other banks and financial institutions on Core Health care) from Global Trust Bank –Ahmedabad (as intimated to you by me,earlier) by mortgaging the immoveable property namely RUPAM BUNGLOW may be attached , cornered, or sold immediately by Global Trust Bank to recover its dues . Hence, please note that it is imperative on your part to take prompt action in the matter to safeguard interest of revenue.

Sir, even at the cost of repetition, I remind you that:

(a) the bunglow has been illegally purchased by Dhanyushya Finance Ltd in compelete disregard of Section 123 of Transfer of Property Act (consequently, the same can be and should be acquired by the income tax act).
(b) There is tax evasion both by so called transferors, transferees, legal advisors including chartered accountant-Mr. Hemant Kashiparekh for which necessary action should be taken promptly to recover tax dues, if not already done.

5. Kindly,excuse me, Sir, for the follow-up action which I am obliged to take against the department while reminding that it is the duty of the department to safeguard the interest of revenue.

A line in reply will oblige.

Yours faithfully,

Pankaj S Mody