I-T To Grill R P Modi, Son Vikram

Hindusthan Development Corporation (HDC) chairman R P Modi and his son Vikram Modi, director of the company, have been asked to appear before the investigation wing of the income-tax (I-T) department next week.

They will be questioned in connection with raids on their premises conducted by the department in November1996. It has extended the date for preparing the appraisal report by a month to March 31 as officials are still working on the case.

An I-T source said summons have already been issued.

IT officials are yet to disclose the extent of evasion made by HDC An I-T source said the recorded statements of the company top brass are expected to reveal more on the case before the finalisation of the draft report.

 

HDC is one of the largest private sector wagon suppliers to the Indian Railways. The company has substantial presence in steel castings, general engineering works, petrocarbon and chemicals, cyanides, insulators, jute and iron and steel.

It is believed that the officials have singled out few instances in which income tax evasion has actually been committed.

The investigation wing has been conducting the probe with the central excise department.

t which had also searched HDC's premises around the same time last year.

According to an excise department source, the amount of evasion committed by the company may involve a few lakhs of rupees. The nature of offence came under illegal availment of Modvat credit.

Government officials are tightlipped about the case as it is politically prominent.

Modi is an independent member of Parliament with BJP support.

During 1995-96, HDC achieved a turnover of Rs 575.21 crore, a 44 per cent increase over the previous year.

The company has 10 works in the country -- Bamunari, Calcutta, Champdany, Haldia, Santragachi (West Bengal), Bharatpur (Rajasthan), Malanpur, Mandideep (Madhya Pradesh), Faridabad and Olpad (Gujarat).