BJP leader PVS Sarma alleges ₹ 2,000 crore scam during demonetisation

PVS Sarma, a former income tax officer, who retired 15 years ago and joined BJP, has alleged that Rs 2,000 crore money laundering scam was executed during the demonetisation period involving top jewellers, builders, textile and diamond industrialists, reported Times of India.

He has demanded a probe by Central Bureau of Investigation (CBI) and Enforcement Department (ED) into the scam. He has also alleged connivance of chartered accountants (CAs) and income tax officers in the multi-crore scam which defeated the purpose of the Income Disclosure Scheme (IDS) launched by Modi government in November 2016. PVS Sarma said that he is also willing to file an affidavit in support of his case. He has also tweeted the documents related to a jewellery firm claiming that the firm sold Rs 96 crore worth of jewellery and gold within a few hours after the announcement of demonetisation on November 8, 2016.

The firm showed additional undisclosed income of Rs 84 lakh as premium making charges collected from the customers and deposited the cash received through the sales in the banks after November 9, Sarma told while addressing a press conference.

According to a report in TOI, Sarma claimed, “Technically, a tax payer cannot file a case with the settlement commission after the assessment is over. But in this case, the jewellery firm went to the settlement commission before the assessment by the I-T, declaring the additional income of Rs 84 lakh through premium making charges. However, the jewellery firm got away with the payment of Rs 80 lakh income tax on the actual sale of Rs 110 crore worth of jewellery between November 5 to November 8.” Sarma, who is the vice-preisdent of city BJP unit, had served IT department for 18 years. Earlier, he was the vice-president of All India I-T Officers’ Association and president of Gujarat I-T Officers Association.