HC asks DG I-T to disclose action taken on middlemen-bureaucrats nexus

MUMBAI: The Bombay high court (HC) on Wednesday asked the Director General of Income Tax (Investigation) to file an affidavit as to what action has been taken against the nexus of middlemen–bureaucrats/politicians which was exposed during one of the raids carried out by the I-T department in September 2021.
The division bench of chief justice Devendra Kumar Upadhyaya and justice MM Sathaye passed the order on a public interest litigation (PIL) filed by activist lawyer, Pravin Wategaonkar. According to him, the I-T searches had revealed that some individuals were working as conduits for Maharashtra bureaucrats and politicians in government land allotments, extension of contracts, mining leases etc.
Wategaonkar has filed the PIL seeking a probe into the revelations and action under the Prevention of Corruption Act against those found involved in corrupt practices.
On Wednesday, when the PIL came up for hearing, the Thane resident pointed out that pursuant to earlier orders passed b by the court, the I-T department had filed an affidavit disclosing names of some middlemen who engage in liaisoning with various departments in the state government and also revealed that some bureaucrats had purchased properties in the name of their relatives or friends or acquaintances.
He said that although the department had disclosed the names of the middlemen, it had refrained from disclosing the names of bureaucrats as the prayer in the main petition was about action under the Prevention of Corruption Act. He further pointed out that the I-T department had not furnished any information to the Maharashtra anti-corruption bureau through REIC, though the affidavit filed by the department stated that the details of the search action were shared with other investigating agencies through proper channels in the meeting of the REIC on 20 June 2022.
The department opposed his prayers for a grant of inspection or production of the I-T appraisal report in the court, contending that the intelligence organisation was exempted from disclosure under the RTI Act.
The court noticed that the DG, I-T (Investigation) was the convenor of the REIC and therefore directed Wategaonkar to add him as a part respondent to the petition, and directed the I-T officer to file an affidavit disclosing action taken by various law enforcement agencies on the information.
“We have perused the minutes of the said (REIC) meeting and accordingly, we call upon the newly impleaded respondent No.6 (DG, I-T) to gather information from the various agencies with whom appraisal report based on the search and seizure was shared, regarding the action which might have been taken by such agencies and file an affidavit giving such details,” said the bench.
The court has directed the DG, I-T, to file the affidavit by October 23 when the PIL is posted for further hearing.