Home News Reports Firm that gave loan to buy land from Robert Vadra received exemptions from I-T Settlement Commission: Reports

Firm that gave loan to buy land from Robert Vadra received exemptions from I-T Settlement Commission: Reports

Bhushan Power and Steel gave Allegeny Finlease a loan of ₹5.64 crore to buy land from Vadra's company, and it got I-T exemption of ₹500 crore in the same year.

A report by The Indian Express has revealed a series of transactions that took place between BPSL (Bhushan Power and Steel) and Robert Vadra owned Skylight Hospitality via another company, which are under ED radar. ED has also asked for a response from Income Tax Settlement Commission (ITSC) which provided 500 crore exemption to BPSL, in contravention of rules.

The Bikaner Land Deal of 2011-12

Robert Vadra owned firm Skylight Hospitality had sold a plot of land in Bikaner district of Rajasthan to Delhi-based Allegeny Finlease Pvt Ltd. The 70-hectare plot amounted to ₹5.15 crore.

According to financial records of Allegeny Finlease Pvt Ltd., the amount used to buy the land from SKylight Hospitality came in the form of a loan from BPSL in the same year. BPSL gave ₹5.64 crore to Allegeny as a loan.

- Ad - - article resumes -

Around the same time of the deal, in the month of December 2011, BPSL approached ITSC against a show-cause notice issued to it by Income Tax department. The notice was pertaining to income additions for assessment years 2004-05 to 2011-12 on various accounts that aggregated to over Rs 800 crore.

ITSC acknowledged the response and termed it ”not invalid” in February 2012, only to issue its first draft order in mid-June 2013. In its order, ITSC reprimanded BPSL for non-compliance with norms and provided no respite from IT Acts and punishment. Interestingly, a fortnight later, ITSC again issued a draft order, reversing its warning and exempted BPSL ₹500 crore, bringing down the questioned income addition to ₹317 crore. The reconstituted bench’s decision had completely turned the previous draft order which was issued merely two weeks ago, thus suspicious.

” ….considering the facts and circumstances of the case and the co-operation extended to the Commission during the hearing, immunity is granted from prosecution and penalty imposable under various sections of the Income Tax Act.” The changed draft order said.

During the investigation, it also turned out that land deal between Skylight Hospitality and Allegeny Finlease Pvt Ltd. was also high-priced. Reports say that Vadra’s Skylight Hospitality had brought the same land (Given to Allegeny) at seven times lower rate in Jan 2010, at ₹1 lakh per hectare. But it was sold to Allegeny at a whopping ₹7 lakh per hectare.

In the same year, Mahesh Nagar, an authorised representative of Skylight Hospitality, bought power of attorney on two parcels of land. It was sold to him by a real-estate agent.

At present, the land discussed in deals lays unused and taken over by weeds, on the Jaipur Highway near Gajner. Only the two parcel of land sold as power of attorney has a solar plant owned by Fronche in Gajner.

ED probe and responses from ITSC

ED has written to ITSC for details of the suspicious transactions. The ITSC has been asked to clarify why the decision taken in mid-June by ITSC was turned by the reconstituted bench. Preceding this letter written two months ago, ED had also written another letter on the same lines. At that time ITSC had answered that folders of transactions have got destroyed in a fire accident.

Chairmen of ITSC Akhilesh Prasad said that he is unaware of the controversy and he doesn’t know details about it, as it happened years ago. Indian Express also reported that there has no response from BPSL till date on the controversy.

In recent times this is the second time Robert Vadra has landed in trouble. We have widely covered the controversial links between shady arms dealer Sanjay Bhandari and brother-in-law of Rahul Gandhi, Robert Vadra. We had reported that Dassault had refused to partner with Bhandari’s Offset India Solutions (OIS) due to his proximity to Robert Vadra and that classified documents were found in his possession and was charged under the Official Secrets Act.

Help Opindia Reach Every Indian. Share This Post
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Big Story

After days of drama, CM Kumaraswamy finally moved the trust vote today that failed to pass in the Assembly. As a result, the Karnataka government has officially collapsed

2019 World Cup Is Here!

Catch the latest on Cricket World Cup as it unfolds, special coverage by Opindia

Proud to be a brand - Made in India?
Now, Advertise on Opindia

Who is Prime Minister Modi’s ‘very special friend’ who came to meet him in the Parliament today?

Prime Minister Modi today shared images with a 'very special friend' who had come to meet him at the Parliament.
Exclusive interview with BLF chief Dr Allah Nazar Baloch with OpIndia

Pakistan plundering Balochistan, we appeal PM Modi to support freedom struggle: Dr Allah Nazar Baloch of BLF speaks exclusively to OpIndia

Away from the glare of the world that often talks tall on Human Rights and the rights of the indigenous people, Balochistan bleeds at the hands of Pakistan. OpIndia interviews founder and chief of Balochistan Liberation Front, Dr Allah Nazar Baloch

Uttar Pradesh: After Triple Talaq, Man pressurizes wife to undergo nikah halala with his brother and uncle

Rabiya further stated that when she refused to give in to her husband's demands, she was thrashed and thrown out of the house.

Hey, New York Times, F**k you, again

India successfully tested anti-satellite missile today, springing it into the elite space club.
Donald Trump lies in the most foolish manner about PM Modi and the Kashmir issue

Had Donald Trump taken time to educate himself about world affairs before becoming President, he would not look foolish

For Donald Trump to lie about something so elementary as India's stand on Kashmir, only goes to show how terribly ignorant the President truly is.

Senior citizen who used to put lizards in his own food on trains to get free meal caught by railway officials

A senior citizen named Surender Pal, in his 70s was found guilty of contaminating his own meal to get free ones from the national transporter

Is there a concerted attempt to sow doubts against PM Modi among his most loyal base?

By now, everyone of us who is out there on social media is aware of this strange new phenomenon.

Live updates Karnataka Trust Vote: Karnataka Government has fallen

JDS-Congress government of Karnataka is facing their second floor test after assembly elections were held in May last year.

Himalayan Blunder : When India gave up on Tibet and what it needs to do now

During Rajiv Gandhi's 1989 visit to China, Deng Xiaoping had suggested: "Let both sides forget the unpleasant period in our past relations and let us treat everything with an eye on the future."30 years have since passed, however, the future is yet to arrive in India, Tibet and China relations.
Image Source: Moneycontrol

Karnataka Congress-JDS coalition government collapses after it fails to get trust vote passed in Assembly

After days of drama, CM Kumaraswamy finally moved the trust vote today that failed to pass in the Assembly. As a result, the Karnataka government has officially collapsed
Subscribe to Day's Top Stories
- Advertisment -

Latest articles

Connect with us

173,801FansLike
160,637FollowersFollow
74,947SubscribersSubscribe
Help Opindia Reach Every Indian. Share This Post