Coalgate, CWG tax evasion probe keep CVC busy

The Central Vigilance Commission acted on a number of corruption cases and directed CBI probe in coal blocks allocation scam and recovery of about Rs 1,000 crore tax evasion in Commonwealth Games-related works this year, besides other anti-graft measures. The probity watchdog was also chosen to head a 10-member global task force to prepare a knowledge management system for promoting international cooperation in checking graft and black money. In its bid to ensure transparency in governance, the CVC directed rotation of officers handling sensitive posts, expediting cases of corruption involving senior government officials and regulations in public procurement, a government activity susceptible to corruption. It also suggested the government to introduce and implement a US-type False Claims Act to recover losses from a corrupt government contractor. The Commission received over 25,000 complaints of financial irregularities and made recoveries of at least Rs 142 crore after inspecting works, including public procurement, carried out by different organisations.

The CVC, which went into alleged irregularities in CWG- related civic and construction projects, found tax evasion of Rs 1,014.60 crore by government departments and private companies. It slapped notices for recovery of over Rs 500 crore tax allegedly evaded by government departments and private firms while executing the works. According to Vigilance Commissioner R. Srikumar, a multi- jurisdictional inquiry found evasions of Income Tax, Service Tax and Value Added Tax among others. At least 9,000 publicly-funded projects were executed by 37 government departments and private companies for the mega sporting event held in New Delhi between October 3-14, 2010. The CVC is looking into 28 cases of alleged irregularities in CWG works.