I-T raid on Jadhav shows BMC contractors-benami nexus, says centre’s note

CISF personnel outside Jadhav’s Mazgaon home during the I-T search on February 25. Pic/Pradeep Dhivar

Days after the income tax searched the premises of BMC's standing committee chairman and his associates and contractors, the Centre's media arm PIB brought out a release on Thursday claiming that the I-T has recovered the evidence of a prominent person's involvement in international hawala transactions. It said the evidence also indicates "a close nexus between BMC contractors and the prominent person".

On February 25, the taxmen began searching 35 premises, including the Mazgaon home and offices of standing committee chairman Yashwant Jadhav. As per the PIB, the I-T has recovered undisclosed cash of Rs 2 crore and jewellery worth Rs 1.5 crore apart from documents pertaining to immovable properties worth Rs 130 crore from the "prominent person".

Citing I-T's preliminary investigation, PIB said the civic contractors have evaded income tax of Rs 200 crore. The press note talked of seizure of numerous incriminating documents, loose sheets and digital evidence. "The evidence strongly indicates a close nexus between these contractors and the said person.

BMC standing committee chairman Yashwant Jadhav

Particulars of about three dozen immovable properties, whose value could be more than Rs 130 crore have also been detected. It includes properties acquired either in their name or their associates or benamidars [unidentified]," said the PIB release. The press note added, "Evidence of their involvement in international hawala transactions and routing of the ill-gotten money to certain foreign jurisdictions have also been recovered." The mention of hawala could mean that the Enforcement Directorate might launch a probe in the case.

Documents show, the PIB note said, that the contractors suppressed their taxable income by inflating their expenses. "For this purpose, the prominent recourse is over-invoicing of sub-contract expenses through a maze of entities and by claiming non-genuine expenses. Certain instances show that cash has been taken out from these entities and the same has been utilised for obtaining undue favours for awarding of contracts and also for making unaccounted payments for investments in properties," said the PIB note.

Jadhav resumed work at the BMC headquarters on Monday after the I-T team left in the morning on the same day. He chaired a standing committee meeting on Wednesday and announced that the next meeting would be conducted on March 7.