Tuesday, March 15, 2011

Vibrant Gujarat summit under I-T scanner

GANDHINAGAR: The income tax department has initiated inquiry regarding several investors who had signed memorandums of understanding (MOUs) with the Gujarat government at this year's Vibrant Gujarat Summit (VGS).

Revealing this in the state assembly on Tuesday, minister of state for industries Saurabh Patel blamed Congress for this.

"We have received a letter from the income tax department seeking information about all the MoUs signed during the VGS 2011," Patel told the house.
Details of VGS held in 2009 too have been sought, he said.
Patel alleged that this was the proof that opposition Congress was creating hurdles in Gujarat's progress.
I-T department's letter states that an inquiry in connection with the VGS 2011 is pending, and "the details of the MoUs signed by various corporate entities with the government of Gujarat need to be examined".
The letter, dated February 17, signed by deputy director (investigations) Anurag Sharma, further says the inquiry is being conducted under section 131 (1A) of the Income Tax Act.
"It is unfortunate that because of the attitude of Leader of the opposition (Shaktisinh Gohil) and his constant complaints to the Centre, the I-T department has sent us a letter," Patel told reporters after coming out of the Assembly.

"The country and the world... all have appreciated the success of VGS 2011. It is unfortunate that I-T department of the country has initiated an inquiry and asked the state to furnish details of MoUs and investors where investment above Rs 1000 crore was pledged," Patel said.
"This is injustice to the state and the people of Gujarat," the minister said.
"I want to ask the Central government, has it sent such letters with regard to the investment proposals in all the states, or has Gujarat been taken as a special case," Patel said.
When asked if the state had replied to the I-T letter, Patel said, "We will get into action now."

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