Sule asked I-T to call off black money probe

In a letter, the MP had contended the inquiry would 'disturb confidentiality of customers' dealings'; the department suspects that the benami accounts are held by some powerful politicians

Sule asked I-T to call off black money probe

In a letter, the MP had contended the inquiry would 'disturb confidentiality of customers' dealings'; the department suspects that the benami accounts are held by some powerful politicians

Supriya Sule wrote a letter to the chairman of the Central Board of Direct Taxes requesting the department to stop investigation in the case

In her letter, Sule had contended that 'roving type of inquiry (sic) will adversely affect the banks relationship with their clients and disturb confidentiality of customers' dealings, especially in the prevailing atmosphere in co-operative sector'.

She requested the chairman of the Central Board of Direct Taxes to give a delegation from the Maharashtra Urban Co-operative Banks' Federation an appointment instead and even said she would lead the delegation.

According to a senior I-T official, the vigilance department stumbled upon documents last year which pointed to several senior politicians and ministers depositing huge sums of black money in urban co-operative banks located in the Kolhapur, Satara, Sangli, Pune and Konkan regions.

Most of these deposits were allegedly made in accounts opened in assumed names (benami accounts) and in the names of the politicians' relatives and people from their villages.

The I-T department then sought information under Section 133 (6) of the Income Tax Act, 1961, relating to cash payments of Rs 1 lakh or more made in one day for the purchase of bank drafts, pay orders and cheques from banks during the 2009-2010 fiscal.

Sule approached

The Income Tax inquiry allegedly threw some politicians into a huddle and they allegedly requested Supriya Sule to intervene.

In an official letter dated November 9, 2010 to the chairman, Central Board of Direct Taxes, Ministry of Finance Department of Revenue (copy with MiD DAY) Sule requested the department to stop investigation into the issue.

According to Sule's letter, she had been asked to intervene by the office bearers of the Maharashtra Urban Co-operative Banks Federation Ltd and she requested the chairman to give them a hearing.

Sule said that the banks 'have expressed operational/ practical difficulties faced by them while submitting such information and requested me to intervene'.

The letter cites the Reserve Bank of India's statement that 'Bankers obligation to maintain secrecy arises out of contractual relationship between the banker and customers.

Therefore, bankers are not obliged to furnish information or divulge it to third parties except under circumstances that are well defined'.

Current status

Despite the letter, however, the I-T department is going ahead with the investigation. "The ongoing investigation is in public interest," remarked a senior I-T official.

He said inquiries have been conducted and the findings were forwarded to higher-ups in the department last month.

The Other Side
When this reporter called Supriya Sule to ask about the letter on Sunday evening, she said she was busy at a function in Pune and hung up.
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A text message on the issue elicited the response "What letter?" When the reporter replied with the date and the contents of the letter, she sent an SMS which said, "Will check." Despite repeated calls for the next two days, Sule did not respond.

The Chief Commissioner of Income Tax, P P Shrivastav, did not respond to repeated calls and text messages from this reporter.

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