Businessman alleges officer demanded bribe

The ADI, Sanjay Singh, allegedly agreed to record a lower figure in admission (of concealed income) if the bribe was paid. An audio-cassette of the conversation between the businessman and the officer reveals how the inquiry after a raid can be influenced to suit the assessee - at a price, of course.

Express Newsline has in its possession a copy of the cassette.

The businessman, J S Bhat, has also filed a writ petition in the Bombay High Court and is being represented by Ashok Kotangle and Co. In fact, after a copy of the petition was served on Singh on Thursday, I-T officers again landed up at Bhat's office.

The company's office was raided on September 14, 1998. The company runs chit fund schemes as well as other businesses like travel agencies.

In the course of the inquiry following the raid, the assessee was called to the ADI's office several times. The conversation was taped surreptitiously, on October 12, after the assessee had already made an initial admission of Rs 2 crore. He was liable to pay Rs 1.2 crore (at 60 per cent) as tax, since it is a raid case. Of this amount, Rs 1 crore had been recovered, and the balance tax to be paid was Rs 20 lakh.

The discussion revolves around the possibility of the officer recording a higher figure by probing the case further, and the alleged demand of Rs 20 lakh as bribe. There are repeated references to both the amounts.

Towards the end of the conversation, the officer even settles for Rs 15 lakh, if the payment is made soon.

(The businessman has stated in the petition that he did not intend to pay any bribe, but recorded the conversation to expose the style of officers who conduct the raids).

Excerpts from the tape:

Bhat: What I'm saying is this. That Rs 20 lakh I am to pay you personally, could you give me a break-up?

Singh: What break-up?

Bhat: Five lakhs, another five lakhs... (Singh continues to dictate something)...

Bhat: That amount I have to pay you personally, if you reduce Rs 5 lakhs, it will be good for me also. (Silence from Singh).

Bhat (continues): And those 20 lakhs towards tax, if you can do away with that...

Bhat: Where will I deliver the amount?... I have not told my CA and you also don't mention the topic. I shall tell only my son... You will reduce five (lakhs) in this? And give me time to pay the tax?

...Bhat: I should not come to further trouble after I've paid you personally...

Bhat: I will have to arrange from somewhere. ...I need an assurance from you that after I pay you 20 lakh personally, after I pay the tax, my matter should be closed.

Singh: As far as my report is concerned, it will. You will have to file a return.

Bhat: Yes, I will have to file a return. But I'll get time to pay the amount? ...First I shall clear your (payment).

Singh: You will have to file a return.

Bhat: But the matter will end here?

Singh: Yes, on my table yes... I'm including my seniors...

Bhat: So, it will stop here.

Singh: It will not proceed further...

Bhat: Today is the 12th, on 17th I'll give you the first instalment. Where shall I give it?

Singh: Instalments will be a problem.

Bhat: Then reduce the amount a bit.

(Laughter).

Bhat: I'll arrange till Thursday. I can give you on Friday.