Why is the Finance Ministry under Jaitley letting NDTV off the hook? What is it that Jaitley and Modi are afraid of?

In a move that will raise eyebrows so high that they will disappear into the hairline, the Finance Ministry under Arun Jaitley has transferred the Chief Income Tax Commissioner SK Mishra and Principal Commissioner PK Ambastha, who were handling the extremely sensitive NDTV tax evasion case. Both officers were heading the Delhi-6 Region of Income Tax, handling several sensitive cases such as the tax evasion of NDTV, Lalu, Mayawati and Mulayam. Mishra was shifted to Delhi-4 region a week back and PK Ambastha has been shunted to Jodhpur. Mishra was co-ordinating the NDTV cases with other agencies such as the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED), the Securities and Exchange Board of India (SEBI) and the legal team in Supreme Court and Delhi High Court.

Chief Commissioner SK Mishra’s team in Delhi-6 region has been working hard for the past two years diligently to fix the humongous tax frauds of the NDTV and slapped Rs. 450 crores tax evasion notice on the corrupt TV channel. The Income Tax findings were ratified by the Income Tax Appellate Tribunal (ITAT)[1]. NDTV’s promoters Prannoy Roy and Radhika Roy were also caught for tax evasion and the tax sleuths had recently fined them Rs. 30 crores each[2].

SK Mishra was monitoring all the cases related to NDTV in several legal forums and ensuring that the Government prevailed. Naturally, he became an undesirable officer for the NDTV’s friends in the Finance Ministry. The bold officer and his team were fighting in all legal forums against the battery of high-flying lawyers fielded by NDTV. Mishra’s move to attach the 30% shares of NDTV[3], held by the shell company (RRPR Holdings) of Prannoy Roy has created many enemies for him.

As he is a very senior officer, if he is transferred out of Delhi, clearance would have been needed from the Appointments Committee of Cabinet (ACC) under the Prime Minister’s Office. So the Finance Ministry under Arun Jaitley cleverly transferred him to another region inside Delhi to avoid PMO’s interference.

PK Ambastha, the second-in-command in the Delhi-6 region is now shifted to Jodhpur. Now the tax sleuths in the region will have to start all over again to bring their new bosses up to speed in all these cases. The message is clear – the new heads will be pliable, as they are aware as to why the Finance Ministry transferred their bold predecessors.

NDTV is using the services of its friends in the Narendra Modi government to sabotage the probes of CBI and ED. Till date, CBI and ED officers have been prevented from summoning Prannoy Roy and Radhika Roy after raiding their homes in June 2017 for ICICI Bank loan fraud. After this event, Roy had jumped up and down to claim in the Press Club how the freedom of speech is in danger[4]. The Finance Ministry under Arun Jaitley has not yet allowed SEBI to register criminal cases against Prannoy Roy for stock exchange manipulations.

The only notable action that has happened thus far in the NDTV frauds is from the Income Tax team under Chief Commissioner SK Mishra and now this bold officer is transferred out to another region in Delhi. It is high time for Prime Minister Narendra Modi fixed the crooked elements that are working overtime in his departments to covertly provide escape routes to the tax evader NDTV and its owner Prannoy Roy.

References:

[1] ITAT’s order exposes the lies of Prannoy Roy and NDTV – Jul 24, 2017, PGurus.com

[2] IT fines Prannoy Roy and wife 30 crores each for hushing up income in 2010-11 – Nov 20, 2017, PGurus.com

[3] Big blow to NDTV, IT Dept. seizes shell company of Prannoy Roy stakeholder in NDTV – Oct 27, 2017, PGurus.com

[4] Arun Shourie should remain a blessing to India, not a curse – Jun 19, 2017, PGurus.com