The Hindu Business Line : Revenue Dept may look into books of cos in Volcker report

THE Revenue Department is likely to look into the books of the 130-odd Indian companies named in the Volcker Committee report to ascertain whether they had violated any domestic tax laws. The Volcker Committee had made a detailed report on kickbacks allegedly paid to the Saddam Hussein Government by companies across the globe to obtain contracts under the oil-for-food programme.

The Finance Ministry officials said that though there was unlikely to be any formal investigation into the affairs of the companies, the tax returns of the Indian companies named in the report could be scrutinised.

Among the Indian companies figuring in the Volcker list are the public sector STC Ltd and Rites Ltd, besides big names in the private sector, including Reliance Industries, Godrej & Boyce Manufacturing, Kirloskar Brother, Kirloskar Oil Engines, Ranbaxy Laboratories, Thermax, Ajanta Pharma, Arihant Industries, Dishman Pharmaceuticals, Cosmos International, United Phosphorous, Dr Reddy's Lab, Jain Irrigation Systems and Mohan Exports.

The companies have allegedly paid about $22 million to obtain contracts worth $425 million. Though the transactions were undertaken around 2001, the Income Tax Department can look into tax details for the past six years.

The Volcker Committee report has created a major controversy in the country and resulted in Mr K. Natwar Singh, who was also named in the report, losing his External Affairs Ministry portfolio. Mr Singh has, however, denied any involvement in the deals mentioned in the Volcker report.

In the wake of the findings of the Volcker Committee, the Government has instituted a judicial probe headed by former Chief Justice, Mr R.S. Pathak that would investigate into facts relating to the allegations against Indian outfits.

Former UN under-Secretary, Mr Virender Dayal, would conduct a simultaneous fact-finding exercise on the allegations.

Meanwhile, the Enforcement Directorate has also grilled a few persons, including Mr Andleeb Sehgal of Hamdan Exports, in particular, who have been linked to paying kickbacks in the oil-for-food programme to ascertain whether there have been any violations under the Foreign Exchange Management Act and the Prevention of Money Laundering Act.

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Revenue Dept may look into books of cos in Volcker report