Auditor Generals Report Says I-T Knew About Fodder Scam

The Comptroller and Auditor General (CAG) has said that the Income Tax department in Bihar was aware of the alleged irregularities in the animal husbandry department, but had failed to inform the state government or the investigating agencies.

The report on the revenue receipts of the government for 1995-96, which was tabled in the Parliament yesterday, has pointed out that in 1992, the Income -Tax sleuths had raided the business premises of five suppliers to the animal husbandry department.

The information on their modus operandi was not passed on to the investigating agencies, the report said.

In fact, the report states, Rs 1.2 crore cash seized from one of the suppliers, Badrinarayan and Company, was illegally and hastily returned without probing the fictitious account books and bank accounts.