Is Delhi govt trying to 'save' Reliance Energy?

Delhi's Lokayukta on Friday came down heavily on the city government's Finance department, accusing it of trying to "scuttle" an inquiry into a whistleblower's complaint alleging a Rs 129-crore scam involving tax liability against Reliance Energy Ltd.

In an order, Lokayukta Justice Manmohan Sarin said that he had perused an anonymous whistleblower's complaint alleging that in a case of Reliance Energy, an Anil Ambani Group company, a tax liability of over Rs 129 crore (Rs 1.29 billion) was levied in 2006.

However, 10 months later on an application filed by the company in November 2008, an Additional Commissioner of the Tax department had reviewed his earlier order and himself held that the appellant was entitled to exemption from sales tax.

This was in conflict with the stand taken by the Administrative department before the Delhi high court that the company was not entitled to such exemption.

He charged the finance department with trying to scuttle a preliminary inquiry into the charges by consistently refusing to provide the requisite information to him.

He gave the department time till February 13 to provide a complete record of office notes, orders and correspondence in this regard.

"By persistently refusing to provide the requisite information for one or other untenable reason, the finance department is trying to scuttle the preliminary inquiry. The same cannot be permitted," Justice Sarin said.

The Lokayukta said the Law department had expressed the view that an appeal should be filed against the order of the Additional Commissioner who had not heard the departmental representatives.

Quoting from the anonymous complaint, the Lokayukta said the review of the original order has been done in collusion with an advocate and the Commissioner in the department of Trade and Taxes who had "taken Rs 20 crore (Rs 200 million)".

Justice Sarin went on to quote from the complaint that huge bribes were being paid for postings in the VAT department and a close relation of Delhi Chief Minister Sheila Dikshit was allegedly involved in this.

The Lokayukta has been involved in a running battle with Dikshit over various issues. He has issued a number of adverse orders against the Dikshit government.

Reliance Energy refused to comment on the issue.

Click here for Rediff Realtime News!