Sinha Will File Suit Against Newspaper

The Prime Minister's Office yesterday said that finance minister Yashwant Sinha would file a defamation suit against an english national daily for publishing reports in respect of allegations that foreign financial institutions were using the Mauritious route for investment in India to evade capital gains tax and that a particular company lead by one of his relative was the main benefaciary.

The Prime Minister's Office also dismissed as "baseless and highly sepculative" a report published yesterday in a section of the Press that the Prime Minister had pulled up finance minister Yashwant Sinha over the issue.

Speaking to Business Standard over the phone from Manali, the PMO spokesman said that the finance minister had met the Prime Minister on May 27, a day before Vajpayee left for Manali.

 

During the meeting, Sinha referred to the allegation made against him regarding capital gains tax evasion by FIIs using the Mauritius route, for investment in India.