Builder links: CBI wants action against I-T panel member

The CBI has sought action against a member of the Income Tax Settlement Commission, S S Bajpai, accusing him of "unbecoming" acts.

Bajpai, previously the director general of income tax (investigations) in Lucknow, is alleged to have used the services of Pankaj Bajaj of Eldeco, a builder being investigated by his own department for income tax violations. Bajpai has denied the allegations.

The CBI has accused income tax officers of taking bribes to settle Bajaj's cases. The agency had conducted searches before registering cases against the officials and Bajaj.

After cases against them were registered in June, four income tax officials were arrested, including its director (investigations) and Bajaj. The same month, Bajpai sought voluntary retirement and was appointed member of the additional bench of the Settlement Commission in New Delhi.

"...it is learnt that Shri Bajpai had got his flat in Lucknow renovated and its interior designing done with the help of Shri Pankaj Bajaj, the Chairman and Managing Director of Eldeco, against whom appraisal related issues arose... and were pending in the subordinate offices of Shri S S Bajpai," the CBI said in its August 24 note to Revenue Secretary Sumit Bose.

Denying the charges, Bajpai said: "I am not involved in any manner in the Eldeco case and have not been named in the FIR. The CBI had called me but the conversation was about my subordinates who were arrested... I was just the administrative head and gave approval for the searches. I had no statutory authority to interfere in the case. When searches are conducted, the director (investigations) sends his report directly to member (investigation) in the CBDT (Central Board of Direct Taxes)."

He also denied "taking any favours" from Eldeco for his house. "I have not taken any favours from Pankaj Bajaj or Eldeco and when questioned by the CBI about the alleged renovation and interior designing of my house in Lucknow, I had told them the same," Bajpai said. "Anyone is free to inspect the house...It is possible that some lawyer, in order to impress his clients, has used my name and indulged in loose talk and bragged about his access. This is how my name may have been dragged into this case," he added.

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