Haryana finance minister Capt Abhimanyu cornered by stamp duty evasion charges
A Haryana inquiry report says that a firm that state Finance Minister Captain Abhimanyu has stakes in has failed to pay levy on a Rs 26-crore mining contract.
In Short
- Report says Capt Abhimanyu's firm failed to pay requisite stamp duty.
- Reports does not accuse the minister of exercising undue influence.
- However, questions of conflict of interest remain.
Haryana BJP is once more in the eye of a controversy that could spiral into a political storm. This time, state's finance minister Captain Abhimanyu finds himself mired in allegations of stamp duty evasion over mining affairs of a company in which he has a substantial share.
The matter pertains to total stamp duty evasion of over Rs 18 crore by several companies, one of which is M/s Sainik Mining and Allied Services Ltd which allegedly dodged payment of Rs 85 lakh over a mining block that was allotted to it in Pichopa Kalan-1, situated in Bhiwani (now Dadri) district.
This company of the minister has its corporate office in Gurugram's tony Ambience Mall, bang on national highway 8, popularly called Gurugram-Jaipur Expressway.
Despite several attempts, Mail Today could not get a reaction from the minister. Upon calling him, his associate said he was busy in a public event and that he would call back. This reporter also sent him a text message, detailing the issues that needed an explanation, but received no response.
The matter came to light after the additional chief secretary and financial commissioner (ACS&FC) conducted an inquiry into complaints against the minister to the chief minister's office.
The issue had also been highlighted by the deputy commissioner of Mahendergarh. The report, submitted to the chief secretary on September 1, however, has exonerated the minister of exercising any undue influence over the administration to facilitate the evasion.
QUESTIONS REMAIN
It, though, raises several serious questions, some regarding propriety and probity in public life, apart from conflict of interest. Gurugram-based RTI activist Harinder Dhingra had alerted the chief minister's office about the issue.
The ACS&FC report agrees that stamp duty evasion did occur for over 37 of the 42 mines which were allotted to the companies in 2014 when the Congress was in power in the state and where stamp duty was evaded by several companies, including M/s Sainik Mining and Allied Services Ltd, by misinterpreting a Punjab and Haryana High Court order. It, however, goes on to say that the minister had on several occasions directed the state authorities to recover the dues.
Captain Abhimanyu holds eight portfolios in the ML Khattar government, including finance, excise and taxation, revenue and law and legislature.
BJP DEFENDS
Haryana BJP spokesperson Raman Malik told Mail Today that he did not see any conflict of interest. In fact, he defended the minister saying he had presented an example of transparent governance.
"A company in which he has interests is a legal entity and he is not associated with any wrongdoing that the company does. On the contrary, he is directing authorities to penalise his own company," he said.
He did not explain why the minister's company has not paid the dues for over three years. The report accepts that duty, three per cent of the contract money, was evaded by these companies, including the one in which Captain Abhimanyu has major interest.
The firm has been listed among his assets in his pre-election affidavit submitted to the election commission. But the report blames the state's mines and geology department for the mess, saying it should have "complied with the statutory provisions of the Indian Stamp Act."
The issue of conflict of interest arises when the same report, after acknowledging that Captain Abhimanyu's company too was among the evaders, says that the "revenue minister has impressed upon the department on regular intervals to recover due stamp duty after proper adjudication of the same by Collector concerned".
The report defends him, saying when the firm was awarded the mining contract, he was not the revenue minister of Haryana. However, observers say Captain Abhimanyu is now directing his own department to act against his company while not paying the stamp duty, and that he was revenue minister when the evasions took place.
The report also observes that "no influence was exercised by anyone in the Revenue Department on the subordinate authorities to not charge stamp duty".