Chidambaram flays govt after I-T, ED lens on son's associates

CBDT states searches on certain firms in Chennai allegedly linked to his son Karti Chidambaram are based upon credible information of tax evasion

On Tuesday, the income tax (I-T) department and the enforcement directorate (ED) searched the premises of some companies in Chennai allegedly linked to Karti Chidambaram, son of P Chidambaram, former Union finance minister and Congress party senior.  Chidambaram said it was a “malicious onslaught”  on his family and himself. “If the government wishes to target me, they should do so directly, not harass friends of my son who carry on their own businesses and have nothing to do with politics,” he stated. His party said it was  “political vendetta”.

The Central Board of Direct Taxes (CBDT) stated the searches were on a group based at Chennai and Tiruchirappalli, strictly in line with the Income Tax Act and based on credible information. “My family and I are quite prepared to face the malicious onslaught launched by the government,” Chidambaram said. “We have made it clear, repeatedly, that no member of my family has any equity or economic interest in any of the firms being targeted. They are companies that are professionally managed and are capable of answering any questions that may be put to them by the authorities. I condemn the attempt to link them to my son and harass them on that ground.”

CBDT stated there was no such purpose behind the actions and no political person or his kin were shareholders or directors at present of the companies searched or surveyed. "Based upon credible information of tax evasion and large-scale financial irregularities committed by a group based at Chennai and Tiruchirappalli, the investigation wing of the department at Chennai has been conducting investigation,” it said.

Survey is also being conducted at the business premises of another private limited company in Chennai which has shareholding in a company of the said group, it further said.

The nodal department said some evidence indicative of tax evasion and financial irregularities had been recovered during the ongoing investigation. "Further action as per law will follow," said the department.

Randeep Surjewala, communications head of the Congress party, said: “Mr Chidamabaram and his family should not be persecuted as a measure of political vendetta to settle political scores. In the recent past, the ED, I-T department and Central Bureau of Investigation have been repeatedly used against Congress leaders in Gujarat, Himachal Pradesh and Rajasthan, to browbeat and seek revenge.”  

Chidambaram alleged the government agenda was being implemented by an officer of the ED who had a pending dispute with the department of revenue. "Orders in his case were apparently passed during the term of my predecessor. He met me and wanted me to intervene in his favour. I declined and told him I cannot reverse orders issued during the term of my predecessor. The change of government has given him an opportunity to misuse his powers to harass my son and his friends," Chidambaram said.