NEPOTISM CASE AGAINST KAPIL MOUNTS
Thursday, 16 May 2013 | PNS | New Delhi
A day after Law Minister Kapil Sibal reversed his predecessor Ashwani Kumar’s decision in the Vodafone taxation case, Prashant Bhushan and Arvind Kejriwal on Wednesday released a set of documents to allege that Sibal’s decision was a clear case of “conflict” of interest.
The Pioneer was first to report about Sibal’s “conflict” of interest in its Tuesday edition. Bhushan and Kejriwal also revealed that at the time of Vodafone acquisition of Hutchison in 2007, the two companies along with Essar set aside Rs 2,000 crore to deal with legal hurdles. Bhushan alleged that this deal executed in London was mainly for lobbying in India.
The anti-corruption crusaders also produced a Foreign Investment Promotion Board (FIPB) document, which showed that Finance Minister P Chidambaram overruled the objections of FIPB officials on Vodafone takeover of Hutchison because it violated the maximum permissible limit of 74 per cent.
Accusing Sibal of “starting corruption within 24 hours” of becoming Law Minister by helping Vodafone in Rs 11,000-crore tax dispute, the duo produced documents to show Sibal’s lawyer son Amit Sibal was engaged by Hutchison to fight its legal cases in India.
While Sibal is yet to react, his son Amit Sibal said the allegations were baseless as he had stopped representing Hutchison and other telecom companies from 2010 onward.
“Prashant Bhushan knew all. But he preferred to put blame on me. The last time I appeared for a telecom company was on April 22, 2010, much before Mr Sibal became the Telecom Minister. I have consciously avoided taking such cases. The last time I appeared for Vodafone was over three years ago when the issue of taxation was not there,” said Amit.
“Within 24 hours of getting Law Ministry, Kapil Sibal sahib started doing corruption. He all of a sudden reversed the decision taken by his predecessor Ashwini Kumar and directed for negotiation with Vodafone, the biggest tax evader. His son Amit Sibal represented Hutchison in several cases, including the cases related to tax evasion and FIPB violations. Kapil Sibal-Chidambaram-Vahanvati coterie is involved in this huge corruption to save Vodafone.”
“Sibal’s decision is totally illegal and against the IT amendment law passed by Parliament,” said the Aam Admi Party leaders.
Accusing Chidambaram of trying to act against the laws passed by Parliament in this regard, Bhushan and Kejriwal alleged that in 2007 during his tenure as Finance Minister in UPA-I, Chidambaram overruled the objections of FIPB officials on the deal. As per the norms in telecom sector maximum foreign investment allowed is 74 per cent. The documents produced by the AAP leaders showed that FIPB officials had pointed out that Hutchison was holding around 89 per cent shares in the name of benami companies owned by Analijt Singh and Asim Ghosh.
“However Chidambaram pressurised the officers to ignore their own findings about the benami ownership of Hutchison through the companies owned by Analjith Singh and Asim Ghosh. After he again became Finance Minister, he started working against the law passed by Parliament on taxing the Vodafone, which acquired Hutchison. I worked in Income Tax. Under what authority, Chidambaram talks about negotiations with a tax evader?” asked Kejriwal.
Bhushan and Kejriwal also produced an agreement between Hutchison and Essar Group companies worth more than Rs 2,000 crore. This deal was executed on March 2007, when file of Vodafone-Hutchison takeover was pending with FIPB.
“This agreement clearly says that Essar Group would help the Hutchison and Vodafone in handling the FIPB and Court related issues by dismissal or withdrawal of cases in Courts and FIPB. This agreement is totally illegal. How can anyone engage in such agreements on settling cases in courts and FIPB? This is nothing but an agreement for lobbying. These activities of Sibal, Chidamabram and Vahanvati revolve around the Rs 2,000 crore.”
Accusing Sibal and Chidambaram of helping Vodafone to escape tax liability, the AAP leaders said that Government has no right to go for negotiation with tax evaders.
“Where is the question of the Government negotiating with Vodafone on a tax liability crystalised by Parliament by law? Does the government negotiate tax liability with other offenders? In fact, CBI was investigating the illegal lobbying agreement of Rs 2000 crore paid by Vodafone and Hutchison to Essar Group for securing the FIPB clearance and for securing the dismissal of the court cases. How CBI can go on a deal where powerful Ministers like Chidambaram and Sibal were involved? Ironically, the same Ministers are now entrusted with the job of securing independence of the CBI. The result is a forgone conclusion. Only the country is being looted by these unending cycles of scams,” they said.
http://www.dailypioneer.com/todays-newspaper/nepotism-case-against-kapil-mounts.html
Thursday, 16 May 2013 | PNS | New Delhi
A day after Law Minister Kapil Sibal reversed his predecessor Ashwani Kumar’s decision in the Vodafone taxation case, Prashant Bhushan and Arvind Kejriwal on Wednesday released a set of documents to allege that Sibal’s decision was a clear case of “conflict” of interest.
The Pioneer was first to report about Sibal’s “conflict” of interest in its Tuesday edition. Bhushan and Kejriwal also revealed that at the time of Vodafone acquisition of Hutchison in 2007, the two companies along with Essar set aside Rs 2,000 crore to deal with legal hurdles. Bhushan alleged that this deal executed in London was mainly for lobbying in India.
The anti-corruption crusaders also produced a Foreign Investment Promotion Board (FIPB) document, which showed that Finance Minister P Chidambaram overruled the objections of FIPB officials on Vodafone takeover of Hutchison because it violated the maximum permissible limit of 74 per cent.
Accusing Sibal of “starting corruption within 24 hours” of becoming Law Minister by helping Vodafone in Rs 11,000-crore tax dispute, the duo produced documents to show Sibal’s lawyer son Amit Sibal was engaged by Hutchison to fight its legal cases in India.
While Sibal is yet to react, his son Amit Sibal said the allegations were baseless as he had stopped representing Hutchison and other telecom companies from 2010 onward.
“Prashant Bhushan knew all. But he preferred to put blame on me. The last time I appeared for a telecom company was on April 22, 2010, much before Mr Sibal became the Telecom Minister. I have consciously avoided taking such cases. The last time I appeared for Vodafone was over three years ago when the issue of taxation was not there,” said Amit.
“Within 24 hours of getting Law Ministry, Kapil Sibal sahib started doing corruption. He all of a sudden reversed the decision taken by his predecessor Ashwini Kumar and directed for negotiation with Vodafone, the biggest tax evader. His son Amit Sibal represented Hutchison in several cases, including the cases related to tax evasion and FIPB violations. Kapil Sibal-Chidambaram-Vahanvati coterie is involved in this huge corruption to save Vodafone.”
“Sibal’s decision is totally illegal and against the IT amendment law passed by Parliament,” said the Aam Admi Party leaders.
Accusing Chidambaram of trying to act against the laws passed by Parliament in this regard, Bhushan and Kejriwal alleged that in 2007 during his tenure as Finance Minister in UPA-I, Chidambaram overruled the objections of FIPB officials on the deal. As per the norms in telecom sector maximum foreign investment allowed is 74 per cent. The documents produced by the AAP leaders showed that FIPB officials had pointed out that Hutchison was holding around 89 per cent shares in the name of benami companies owned by Analijt Singh and Asim Ghosh.
“However Chidambaram pressurised the officers to ignore their own findings about the benami ownership of Hutchison through the companies owned by Analjith Singh and Asim Ghosh. After he again became Finance Minister, he started working against the law passed by Parliament on taxing the Vodafone, which acquired Hutchison. I worked in Income Tax. Under what authority, Chidambaram talks about negotiations with a tax evader?” asked Kejriwal.
Bhushan and Kejriwal also produced an agreement between Hutchison and Essar Group companies worth more than Rs 2,000 crore. This deal was executed on March 2007, when file of Vodafone-Hutchison takeover was pending with FIPB.
“This agreement clearly says that Essar Group would help the Hutchison and Vodafone in handling the FIPB and Court related issues by dismissal or withdrawal of cases in Courts and FIPB. This agreement is totally illegal. How can anyone engage in such agreements on settling cases in courts and FIPB? This is nothing but an agreement for lobbying. These activities of Sibal, Chidamabram and Vahanvati revolve around the Rs 2,000 crore.”
Accusing Sibal and Chidambaram of helping Vodafone to escape tax liability, the AAP leaders said that Government has no right to go for negotiation with tax evaders.
“Where is the question of the Government negotiating with Vodafone on a tax liability crystalised by Parliament by law? Does the government negotiate tax liability with other offenders? In fact, CBI was investigating the illegal lobbying agreement of Rs 2000 crore paid by Vodafone and Hutchison to Essar Group for securing the FIPB clearance and for securing the dismissal of the court cases. How CBI can go on a deal where powerful Ministers like Chidambaram and Sibal were involved? Ironically, the same Ministers are now entrusted with the job of securing independence of the CBI. The result is a forgone conclusion. Only the country is being looted by these unending cycles of scams,” they said.
http://www.dailypioneer.com/todays-newspaper/nepotism-case-against-kapil-mounts.html