I-T widens IPL probe

Visits Kings XI Punjab office
MUMBAI/CHANDIGARH, APRIL 16
The Income Tax department today widened its search operations bringing under its scanner Kings XI Punjab team as part of its countrywide probe into the IPL bidding process and the source of funding of the teams.
After a night-long operation at the BCCI headquarters and the offices of IPL Commissioner Lalit Modi, a team of five I-T officials including two deputy directors visited the Punjab Cricket Association (PCA) office in nearby Mohali which houses the IPL franchise Kings XI Punjab.
“We are conducting a survey operation to look into and verify the IPL accounts which are suspected to be maintained here,“ Director (Investigation) of the I-T Department, Panchkula Pawan Parmar told PTI.
This operation is being done under section 131 A of the Income Tax Act, she said adding that the survey was undertaken in the light of the action taken by the department in Mumbai where the IPL headquarter is located.
There were also reports that similar exercise was undertaken at Rajasthan Royals office in Jaipur and in the office of one of the owners of Kochi franchise in Bangalore but there was no confirmation.
A senior I-T official in New Delhi said, the department may undertake nation-wide operations to widen their probe.
“Once we have the understanding of the bidding process and the investment patterns of these franchisees, a nation-wide operation will be launched to ascertain and check tax evasion and money laundering in the entire process,” he said.
Treasurer of the PCA G S Walia told PTI that the Income Tax officials had come to the stadium as part of their country wide drive to collect data relating to the IPL.
“It is not a raid by the I-T officials,” he said also denying that the visit of the I-T officials had anything to do with the fact that IPL Commissioner Lalit Modi was a vice president of the PCA during 2004-08.
I-T sources said Modi could also be called for questioning.
“We may call him for questioning as being a Commissioner he is involved in all the financial and other businesses of the IPL,” a senior I-T department official said on the condition of anonymity.
Officials also did not rule out questioning the officials of different franchisees and calling for documents to find out the source of investment into the teams as the probe progresses.
The Mumbai I-T directorate has already sent an initial report on yesterday’s operation at the IPL and BCCI premises to Central Board of Direct Taxes (CBDT) in New Delhi.
I-T sources said during the seven-hour operation at Lalit Modi’s office in Mumbai that ended in the small hours of today they took copies of the bidding documents of all the franchisees including the Kochi consortium, over which a controversy involving Union Minister Shashi Tharoor has arisen.