Rs. 1026 crore tax exempted without any documentation : Asian Age reports

While arrest of Arunachal Pradesh ex-chief minister Mr. Gegong Apang is making the headlines recently, another thousand crore irregularities has been reported only in Asian Age news paper and hat has not featured in any of of the local news papers, TV channel in North East.

Many online citizens are already questioning why this irregularities are not published in local news papers or broadcast in TV channels in North East.

Here is the report from Asian Age :
Even as northeast ern states are yearning for fund to ensure the right to education for its children, a group of businessmen largely known as fly-by-night operators of the region have been allowed to get away with Rs 1,500 crores in the form of transport subsidy.

There are only 15 influential businessmen who got most out of the industrial incentives, including transport subsidy, disbursed to northeastern states.

The records of North Eastern Development Finance Corporation Ltd, in possession of this newspaper, indicate that 80 per cent of the transport subsidy has gone to such industrial units which have not been able to submit their return properly to the tax departments of the respective states in an obvious attempt to cover up voluminous fictitious claim of transport subsidy. In what has also been corroborated in Assam CAG report, which stated, “In absence of any provision for furnishing supporting documents for claiming exemption on tax paid sales, tax of at least Rs 1,026 crores was irregularly exempted without any documentation.” The exemption in state taxes in addition to transport subsidy is the part of northeast industrial policy, incorporated by respective states. The worst is the situation of frontier state of Arunachal Pradesh, where the Satyam Group of Industries owned by a businessman of Assam claimed a lion’s share of transport subsidy but Comptroller and Auditor General report could not find even a mention about the existence of any such industries which were genuinely involved in import and export of raw materials and finished goods in the state.

The authorities in the state’s industry department, however, told this newspaper that not a single industrial unit, including the Satyam Group, has submitted statistics of production and utilisation of raw materials to the department.

Even the state’s labour department could not give information about the number of employees enrolled
by the Satyam Group of Industries which has taken away the majority share of transport subsidy claimed by the industrial units of the frontier state.

The group was claiming transport subsidy against its units in three sectors -Ferro Alloys, Iron and Steel and Coal and Coke.

When contacted, Papumpare district industrial centre in Arunachal Pradesh, which has approved transport subsidy claim of Rs 156.78 crores, admitted that the claimants of the transport subsidy has not been submitting any kind of records and updates on their industrial activities so they are not aware what kind of investment the Satyam Group of Industries has done in the state against which the group was draining out huge transport subsidy in the name of processing and producing iron-steel, Ferro alloys and coal and cokebased products.

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