Delhi Lieutenant Governor VK Saxena on Monday wrote a letter to Chief Minister Arvind Kejriwal "advising" him to ask the finance minister to conduct a detailed inquiry into alleged Goods and Services Tax (GST) evasion in the city. In a statement, the Delhi government condemned instances of tax evasion and said that despite its efforts to develop a software to address the problem, a proposal to this effect has been "languishing among bureaucratic offices for almost a year".

In his letter to Kejriwal, Saxena said Delhi has achieved the "inglorious distinction" of recording the highest tax evasion in the country. In all, 483 "bogus firms" were detected which evaded Rs 3,028 crore of tax, he said. "It is indeed dubious that the capital of the country tops the list of tax evasion amongst all states and union territories, with the one on the second place behind Delhi by as much as Rs 827 crore. This is a serious matter in which the possibility of collusion of officials in the GST department cannot be ruled out," the LG said.