Through her letter she has asked the two top officials to explain why the state government tried to obstruct the Income Tax Department raids. The Governor has expressed grave concern over the manner in which the state Police acted during the raids. She has also directed both the Chief Secretary and the DG to stop state government’s interference in the task of Income Tax authorities.

Chief Secretary S. R. Mohanty in his reply sent promptly asserted that nothing would be done against the provisions of law. DG also said that nothing such would be done which may obstruct the task of the central agencies.

DG in his letter conveyed his concern over the use of CRPF during the raids without taking state Police into confidence. He requested the Chief Secretary to take this matter with the Central Government. He pointed out that deployment of over 200 armed CRPF personnel in a residential area caused terror and fear among the residents as it was fraught with danger. He also stated that in such operations the state Police is ever ready to cooperate with the Central forces but regrettably no such cooperation was sought.

Meanwhile Income tax Department continued its raids on the second day. Illegal transactions of more than Rs. 281 crore were detected during raids in various locations across Madhya Pradesh, Central Board of Direct Taxes (CBDT) spokesperson said.

Income Tax officials informed the Election Commission of India about seizures and benami properties terming it as violation of model code of conduct. Official twitter handle of Income Tax department tweeted that Rs. 242 crore was siphoned off to 80 companies in global tax havens. Moreover, cash books recovered from premises in Delhi had entry of unaccounted Rs. 230 crore. Documents related to benami properties in posh localities of New Delhi were also recovered.

Reports said that a part of the cash was also transferred to the headquarters of a major political party in Delhi, including around Rs. 20 crore which was moved through hawala recently to the headquarters of a political party from Tughlaq Road residence of a senior leader of the party.

Moreover unaccounted cash worth Rs. 14.6 crore, 252 bottles of liquor, some arms and tiger hide were also found in Delhi premises. Income tax raids on CM Kamal Nath’s close aids continued for the second day on Monday.

Five large size trunks full of cash recovered from Pratek Joshi’s residence in Bhopal were deposited in Reserve Bank of India. The amount is said to be more than Rs. 10 crore. Wife of Praveen Kakkar was interrogated for about seven hours at IDBI Bank in Indore. She reached back home late in the evening.

Raids at flats in Platinum Plaza in Bhopal, where Ashwini Sharma and Prateek Joshi were staying continued amidst heavy police presence. Currency counting machines were pressed into service for counting of forfeited money. Moreover, incriminating documents related to investments and properties were recovered from their flats. Passport of Ashwini Sharma has been confiscated by IT officials. Sources said that Sharma had been visiting foreign countries frequently. IT department is trying to figure out hawala connection in these visits.

During raids some sensational facts about Ashwini Sharma and Prateek Joshi came in the light. They made fortune in just a few years. Sharma and Joshi, who were close to ministers and bureaucrats during BJP government, continued their network with Congress coming to power. During Congress government, both were not only close to ministers and bureaucrats but also had access to Praveen Kakkar, officer-on-special duty (OSD) to Chief Minister Kamal Nath.

They both due to their access in the government made crores in just a few years. They were quite close to two former ministers during the BJP government. Sharma had direct entry to office and residence of these ministers. One of these ministers had a key department in his portfolio. Sharma did works worth in crores in the department under the said minister.

Apart, Sharma was close to one minister who lost recent assembly elections. It is said that Sharma was so influential that he could get any file signed by this minister easily. Sharma, after Congress came to power, developed good relations with two ministers. Though they could not help Sharma much, however he managed to get transfers of officers done through them. Besides, Sharma and Joshi used to visit several former and current ministers frequently.

Sharma is also close to several bureaucrats. They also got postings of several officers done. Sharma used to get works assigned for his NGOs through these officers only. Their dealings intensified after coming into contact with Kakkar. Sharma and Joshi had deep influence in the government with the help of Kakkar. The IT sleuths have recovered key information during raids and may tighten its noose on these people after some time.

While the raids are still continuing the state Government headed by Kamal Nath is planning to launch counter offensive on the BJP. The state Government is in the knowledge of several corrupt acts of the BJP Government. The moment it masters relevant facts it might lodge FIR in the concerned Police station.

Meanwhile a petition before the Indore bench of MP high court was moved by the lawyers of Kakkar, challenging raids being carried out by the income tax department at his residence and establishments. The writ petition has been filed under Section 132 of Income Tax Act. The act empowers the chief commissioner or commissioner to carry out search of any place where the authorities may have reason to believe that money, bullion, jewellery or other valuable articles may be stored – which have not been disclosed for the purpose of Income Tax.

The Act lays down procedure and rules for a raid. The petitioner has challenged the applicability of the Act in action being taken by income tax against them. CBDT has been made respondent in the petition and advance copy served to advocate Veena Mandlikm standing counsel for the CBDT. (IPA Service)