I-T dept begins probe into Gadkari's power and sugar firms

After a discreet probe by the Ministry of Corprate Affairs into companies that have invested in BJP president Nitin Gadkari’s businesses, the Income Tax department today began a probe into BJP president Nitin Gadkari’s Purti Power and Sugar Ltd.

[caption id=“attachment_502519” align=“alignleft” width=“380”]  Nitin Gadkari[/caption]

According to a CNN IBN Live report, I-T authorities will also probe source of funds of companies that were invested in Purti. The IT departments of Mumbai and Pune will look into the investments and will submit a report to Central Board Direct Taxes (CBDT) soon.

Prima facie evidence suggests that shell companies have invested in Purti and their fake addresses were submitted to the Registrar of Companies. Reports claimed that major investments and large loans to Purti were made by construction firm Ideal Road Builders (IRB) group, which had won some major contracts between 1995 and 1999, when Gadkari was PWD minister in Maharashtra.

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Sources told the TV channel that if necessary Gadkari may also be summoned in the case.

Under pressure, Gadkari today cancelled his scheduled trip to Delhi and decided to stay back in Nagpur after fresh cases of financial impropriety, involving a company -Ideal Energy- having business links with his firm, surfaced.

On Tuesday, Corporate Affairs Minister Veerappa Moily had said that Registrars of Companies would inquire into the allegations. On his part, Gadkari has denied the allegations and said he was prepared for a probe.