close_game
close_game

ACB starts inquiry into middlemen-bureaucrats/politician nexus

Jan 12, 2025 07:06 AM IST

ACB probes 100 individuals linked to a corruption nexus in Maharashtra, uncovered by I-T raids in 2021, involving bureaucrats and politicians.

MUMBAI: The Anti-Corruption Bureau (ACB) has initiated an inquiry into the names of approximately 100 individuals and entities identified by the Income Tax (I-T) Department in connection with an alleged nexus involving middlemen, bureaucrats, and politicians in Maharashtra. This nexus was uncovered by the I-T Department during raids conducted in September 2021.

ACB starts inquiry into middlemen-bureaucrats/politician nexus
ACB starts inquiry into middlemen-bureaucrats/politician nexus

In response to a Right to Information (RTI) query filed by activist-lawyer Pravin Wategaonkar, the ACB confirmed that it has commenced an investigation based on the information provided by the I-T Department. However, the bureau has declined to disclose further details or grant Wategaonkar access to related documents and reports.

In November 2023, the I-T Department informed the Bombay High Court that it had submitted a list of 103 individuals and entities to the Maharashtra ACB. This development was in response to a public interest litigation (PIL) filed by Wategaonkar, who sought a thorough investigation into the alleged nexus. The court had directed the I-T Department to submit an affidavit in September 2024.

Wategaonkar claims that at least one individual on the list was implicated in the 2010 Adarsh Co-operative Housing Society scam. This scandal involved politicians, bureaucrats, and military officials conspiring to secure flats in a Colaba building originally intended for war heroes and widows. According to Wategaonkar, the I-T affidavit revealed that the middleman had loaned 30 lakh to Kanhaiyalal Gidwani, 23 lakh to Kailash Gidwani, and 27 lakh to Amit Gidwani, all accused in the Adarsh scam.

I-T Department officials stated that one of the businessmen under investigation had amassed significant unaccounted income by acquiring land from farmers and transferring it to government undertakings or major corporations. The scheme allegedly attracted investments from senior bureaucrats, their relatives, and other influential figures.

The alleged nexus was brought to light following the I-T Department’s raids in September 2021, which exposed transactions totalling around 1,050 crore. The transactions reportedly included cash payments by bureaucrats to secure key positions in a state ministry and by contractors to expedite payment releases. The raids targeted 25 residential and 15 office premises, as well as suites at The Oberoi hotel in Mumbai, which were reportedly used by intermediaries to meet clients. Authorities seized cash worth 4.6 crore and jewellery valued at 3.42 crore. The intermediaries were also found to be using the traditional Angadia system to transfer cash.

Following these revelations, Wategaonkar filed a PIL in the Bombay High Court, urging the registration of offences under the Prevention of Corruption Act against those involved. His petition highlighted that the intermediaries served as conduits for bureaucrats and politicians in dealings related to land allotments, contract extensions, and mining leases. Wategaonkar also pointed out that, despite the I-T Department’s assertion that it had shared its findings with law enforcement agencies under the Regional Economic Intelligence Committee, no action had been taken.

In its affidavit, the I-T Department stated that it had completed the assessment of the 103 individuals and entities identified during the 2021 searches and provided the details to the ACB. However, Wategaonkar alleged that the names of bureaucrats involved in the nexus were not disclosed, even though the raids indicated that some had purchased properties in the names of relatives, friends, or acquaintances. The I-T Department did reveal the identities of certain middlemen who liaised with various state departments.

rec-icon Recommended Topics
Catch every big hit, every wicket with Crickit, a one stop destination for Live Scores, Match Stats, Infographics & much more. Explore now!

Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.
See More
Catch every big hit, every wicket with Crickit, a one stop destination for Live Scores, Match Stats, Infographics & much more. Explore now!

Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Saturday, February 08, 2025
Start 14 Days Free Trial Subscribe Now
Follow Us On