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‘Rich' Koda asked to pay Rs 1,200 crore as fine
Sent back to cell of Birsa Munda Central Jail from cosy comfort of VIP cottage of Rajendra Institute of Medical Sciences (RIMS) and the Income Tax notice slapping a whopping Rs 1200 crore fine , two bad news greeted former Jharkhand CM Madhu Koda, this week.
In 100 pages of elaborate and lengthy notice, Income Tax department has asked Koda to deposit Rs 1,200 crore as a penalty against his undisclosed assets worth Rs 3,300 crore that the department unearthed during nationwide raids in 2009.
“The Central Assessment Wing of the Income tax has served notice upon him based on the assessments of his undisclosed property. The state wing of the Income Tax (Bihar and Jharkhand) has no role in it,” a senior Income Tax official told on the condition of strict anonymity. Asked whether the said undisclosed assets belong to Koda the official explained, “It includes all undisclosed assets of his associates. Since Koda is believed to be instrumental behind the scam, there are proofs too, all undisclosed assets in the name of his aides considered to be belonging to him,” the official said.
Top sources said that the demand note of penalty is based on the assessment of undisclosed properties of Koda and his associates in India. “We are still in process of collecting complete details of investments made by them in the foreign countries including Dubai, Thailand, Liberia and others,” the official said.
For instance one of key associates Koda, Sanjay Chaudhary is believed to have invested Rs 300 crore in an oil company in Dubai. Koda is left with few options like seeking relief from the appellate body of the Income Tax or its tribunal or to fight a legal battle against the notice. Koda remained Chief Minister from September 18, 2006 to August 27, 2008 serving 709 days. And if one divides the said amount with the number of days he served as CM then Koda and his buddies, Binod Sinha and Sanjay Choudhary minted Rs 4.65 crore on per day basis. This official estimate of awesome enormity does not include a major chunk of some unknown foreign investments, properties and some more hawala transactions where investigations are still going on.
As Chief Minister Koda, his first task was to sign mining MoUs worth Rs 1,98, 362 crore with around 44 firms, which according to the investigative agencies was the prime source of corruption. His associates soon turned rich; regaling in real estate and property in Jharkhand and elsewhere with forming and buying as many as 25 companies in less than two years. This includes investments in companies in Mumbai, Kolkata and Lucknow to the tune of Rs 1,500 crore and Rs 400-500 crore in hawala transactions.
Mumbai-based hawala entry operators, Lalit Jain and Arvind Vyas during interrogation had confessed to Koda having invested more than Rs 50 crore abroad. In another revelation, Rs 300 to Rs 400 crore had been sent out of the country to Thailand, Malaysia, Dubai and other countries through hawala, he added.
Binod Kumar Sinha and Vijay Joshi had invested Rs 25 crore to revive the defunct firm, Indo-Asahi Glass Company. Transaction of more than Rs 1,200 crore were made in Balaji Group of Companies by Koda's close associate, Binod Kumar Sinha. Between year 2006 to 09; transactions worth Rs 990 crore were made with Balaji Bullion Bazar while, Rs 360 crore of transaction was done with Balaji Bullion Corporation. Another transaction worth Rs 100 crore was made in Balaji Bullion and Commodities. Manoj Punamiya, whose wife is the director of the company, is a close associate of Binod.
It is another story that Koda had not even Rs 8,500 to pay the bill of the RIMS' cottage after he was discharged and shifted back to the jail following his medical examination by the military doctors. Where has his money gone?
Sent back to cell of Birsa Munda Central Jail from cosy comfort of VIP cottage of Rajendra Institute of Medical Sciences (RIMS) and the Income Tax notice slapping a whopping Rs 1200 crore fine , two bad news greeted former Jharkhand CM Madhu Koda, this week.
In 100 pages of elaborate and lengthy notice, Income Tax department has asked Koda to deposit Rs 1,200 crore as a penalty against his undisclosed assets worth Rs 3,300 crore that the department unearthed during nationwide raids in 2009.
“The Central Assessment Wing of the Income tax has served notice upon him based on the assessments of his undisclosed property. The state wing of the Income Tax (Bihar and Jharkhand) has no role in it,” a senior Income Tax official told on the condition of strict anonymity. Asked whether the said undisclosed assets belong to Koda the official explained, “It includes all undisclosed assets of his associates. Since Koda is believed to be instrumental behind the scam, there are proofs too, all undisclosed assets in the name of his aides considered to be belonging to him,” the official said.
Top sources said that the demand note of penalty is based on the assessment of undisclosed properties of Koda and his associates in India. “We are still in process of collecting complete details of investments made by them in the foreign countries including Dubai, Thailand, Liberia and others,” the official said.
For instance one of key associates Koda, Sanjay Chaudhary is believed to have invested Rs 300 crore in an oil company in Dubai. Koda is left with few options like seeking relief from the appellate body of the Income Tax or its tribunal or to fight a legal battle against the notice. Koda remained Chief Minister from September 18, 2006 to August 27, 2008 serving 709 days. And if one divides the said amount with the number of days he served as CM then Koda and his buddies, Binod Sinha and Sanjay Choudhary minted Rs 4.65 crore on per day basis. This official estimate of awesome enormity does not include a major chunk of some unknown foreign investments, properties and some more hawala transactions where investigations are still going on.
As Chief Minister Koda, his first task was to sign mining MoUs worth Rs 1,98, 362 crore with around 44 firms, which according to the investigative agencies was the prime source of corruption. His associates soon turned rich; regaling in real estate and property in Jharkhand and elsewhere with forming and buying as many as 25 companies in less than two years. This includes investments in companies in Mumbai, Kolkata and Lucknow to the tune of Rs 1,500 crore and Rs 400-500 crore in hawala transactions.
Mumbai-based hawala entry operators, Lalit Jain and Arvind Vyas during interrogation had confessed to Koda having invested more than Rs 50 crore abroad. In another revelation, Rs 300 to Rs 400 crore had been sent out of the country to Thailand, Malaysia, Dubai and other countries through hawala, he added.
Binod Kumar Sinha and Vijay Joshi had invested Rs 25 crore to revive the defunct firm, Indo-Asahi Glass Company. Transaction of more than Rs 1,200 crore were made in Balaji Group of Companies by Koda's close associate, Binod Kumar Sinha. Between year 2006 to 09; transactions worth Rs 990 crore were made with Balaji Bullion Bazar while, Rs 360 crore of transaction was done with Balaji Bullion Corporation. Another transaction worth Rs 100 crore was made in Balaji Bullion and Commodities. Manoj Punamiya, whose wife is the director of the company, is a close associate of Binod.
It is another story that Koda had not even Rs 8,500 to pay the bill of the RIMS' cottage after he was discharged and shifted back to the jail following his medical examination by the military doctors. Where has his money gone?
