The present order is a complete reversal of the ITSC’s original stand rejecting settlement by the Sahara group.

In yet another twist to the controversy over Sahara-Birla papers that allegedly detail payments to several politicians, the Income Tax Settlement Commission (ITSC) has issued an order, granting Sahara India immunity from prosecution while dismissing evidentiary value of the sensational diary.

According to sources, Sahara India has been granted immunity from prosecution and penalty by the ITSC in an order passed on November 10. This was first reported by The Indian Express.

The ITSC has agreed with Sahara’s claim that the Income Tax Department failed to prove the authenticity of loose sheets of paper recovered during a raid that show alleged massive payments to several politicians, including Prime Minister Narendra Modi, when he was the Gujarat Chief Minister.

The ITSC order agreed with Sahara’s argument that one of its employees got together with a friend to malign another employee, who headed the office of Sahara Group chairman.

The present order is a complete reversal of the ITSC’s original stand rejecting settlement by the Sahara group. According to reports, the final order was issued after just three hearings, and it was issued three days after the last hearing in the case on November 7, 2016.

Reports also point out that the ITSC takes up to 18 months for issuing a final order, and rarely has it passed a judgment in less than a year.

The Commission has stated that only the amount seized during the raids, Rs. 137.58 crore, would now be taxed. And given the company’s financial difficulties, it has been allowed to pay them in 12 installments.

Reports also point out that the ITSC takes up to 18 months for issuing a final order, and rarely has it passed a judgment in less than a year.

The Sahara papers, along with the Birla papers, which also show alleged payments Rs. 25 crore to Mr. Modi when he was the Chief Minister, have been in the centre of a major political storm, after it emerged in public.

The papers were placed in the Delhi Assembly by Chief Minister Arvind Kejriwal and Congress vice president Rahul Gandhi has repeatedly referred to it.

In the Sahara papers, which are mostly computer printouts and handwritten sheets, there are detailed entries showing payments to over 100 politicians from at least 14 parties.

Advocate Prashant Bhushan has also filed a PIL petition before the Supreme Court demanding investigation into the Sahara-Birla papers. The next hearing in the case is scheduled for January 11.