Kin of CM, Eshwarappa evaded taxes: Cong

Addressing reporters, he alleged that three Shimoga based companies - JAM pipes, Bhadra Concrete Products and Aditya Concrete Products - were clandestinely removing excisable goods under the cover of fake, illegal, fraudulent and unaccounted invoices. Tax evasion by these companies was revealed after Central Excise officers raided them recently, he said.

Probe demanded

Ugrappa released a set of documents to back his allegations and demanded that the Chief Minister should immediately resign from his post. Besides, a thorough inquiry into the illegal transactions of these firms should be ordered, he said.

All the three firms were manufacturing the same products from one place, Machenahalli, with one person as the manager for all the three.

“This one supply point for the three firms has been conveniently done for the sole purpose of evading Central Sales Tax, Value Added Tax (VAT), income tax and education cess,” he alleged.

Ugrappa said that the manager had made a confessional statement about the clandestine transactions of the firms. He said that the firms did pay Rs 14.68 lakh as tax and Rs 3.26 lakh as fine, after show cause notices were issued to them. “But they are yet to pay the CST, VAT and income tax,” he said.

He said that tax evasion by the firms called for criminal proceedings against them for offences including cheating, mischief, forgery and falsification of accounts under IPC sections.

These companies had been operating since 1992, and a thorough probe would reveal the total tax evasion by them, he said.

Reacting to the charges, BJP spokesperson Ayanur Manjunath said the allegations were far from truth.

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