Press Statement issued by Sh. Arun Jaitley about the VBS Files Scam.
Online PR News – 27-October-2012 – Shimla/Himachal Pradesh – The VBS Files
Earlier this month a section of the media had carried news reports regarding searches and seizures made by the Income Tax Department from the office of a Bombay based business group referred to as ‘Ispat Industries’. The seized documents included cash payments made to various officials of the Government and others, wherein a sum of Rs.2.28 crores (approx.) is shown as paid to one ‘VBS’ . Shri Virbhadra Singh has denied that he is that ‘VBS’ referred to in the diaries. The media reports indicate that the matter is being investigated by the CBI.
The Shimla Income Tax Inquiry
Independent of the above, the following further events have taken place: -
• One Shri Anand Chauhan, a resident of Shimla, in an account No. 524185 he opened with the Punjab National Bank, Shimla, during the period 2008-09, 2009-10 and 2010-11 , has deposited large amounts of money in cash in the said Account. These monies are over Rs 5 crores (approx.). The said Anand Chauhan further has issued cheques from this bank account and paid the premiums of several LIC poicies which are held in the name of Shri Virbhadra Singh, his wife Pratibha Singh and their two children. The details of these LIC policies are contained in the declaration of assets filed by Shri Virbhadra Singh along with the Election Nomination before the Returning Officer.
• The unanswered question is why did Shri Anand Chauhan pay the premiums on behalf of Shri Virbhadra Singh and his family members? How does a mere LIC Agent gets crores of rupees in cash to be deposited in his bank account ?
• Shri Anand Chauhan is scrutinized by the Income Tax Department and his statement has been recorded. Upon recording of the statement, Shri Chauhan and Shri Virbhadra Singh have now been alerted that these matters are being enquired into by the Income Tax Department.
Agricultural Income of Shri Virbhadra Singh frm his Apple Orchard
• Shri Virbhadra Singh files his income-tax returns for the three calendar years ending 31.3.2008, 31.3.2009 and 31.3.2010 wherein he discloses the agricultural income from his orchard as Rs.11,05,000 (with expenses of Rs.3.6 lakhs deducted) Rs.15,00,000 and Rs. 25,00,000 respectively for each of the three years.
• There is an agreement dated 17.6.2008 wherein the orchard of Shri Virbhadra Singh has been given on contract to one Shri Bishambar Das who pays Shri Virbhadra Singh a sum of Rs.10,50,000/- for each of the three years for his orchard. The balance earned amont belongs to Shri Bishambar Das.
• Since the income from the orchard is a few lakhs as per Shri Virbhadra Singh’s own income-tax returns, how does he then explain Anand Chauhan receivinf Rs. 5 crores of cash deposited in his bank and paying it for Shri Virbhadra Singh and his family’s LIC policies?
Retrospective increase in Shri Virbhadra Singh’s income
• Caught red handed, Shri Virbhadra Singh and Anand Chauhan enter into a back dated agreement and date the same as 15.6.2008. Under this agreement Anand Chauhan Is to manage the orchard of Raja Virbhadra Singh, keep the entire proceeds in a bank and pay the same towards LIC policies. This agreement is obviously a forgery for the following two reason:-
(a) There is already an agreement dated 17.6.2008 with Shri Bishambar Das for management of the land/orchard. How can there be another agreement dated 15.6.2008 for management of the same land and for the same period. Obviously one has to be ante dated.
(b) The amount of income 3200 trees can generate is reflected both in the Tax returns of Raja Virbhadra Singh and his agreement with Bishambar Das. This amount now cannot be inflated by several thousand percent.
The Final Act of Desperation
Shri Virbhadra Singh has now filed revised income tax returns for the above three years on 2.3.2012, in which the agricultural income of a few lakhs of rupees as already disclosed, Shri Virbhadra Singh has mentioned that his new agricultural income through Anand Chauhan should now be assesses as Rs. 2,21,35,000/-, Rs.2,80,92500/- and Rs.1,55,00,000/- respectively for the three years. By a miracle or forgery Shri Virbhadra Singh has now retrospectively increased his income by Rs.6.15 crores.
From the above mentioned it clearly appears that large amounts of cash income has been unauthorisedly generated for the benefit of Shri Virbhadra Singh and his family members. The attempt was to deposit this cash in a bank account held by Shri Anand Chauhan from where it is paid towards the LIC premiums. However, since the Income Tax Department became aware of this transaction, back dated agreements are entered into to prepare a false defence by retrospectively increasing Shri Virbhadra Singh’s income.
This is not merely a case of corruption. Additionally, it is a case of forgery and crime. The Bharatiya Janata Party demands that a Special Investigative Team be set up to investigate this monumental fraud.