Income Tax department conducts raids in Rajasthan, Delhi; Congress cries foul

The Income Tax Department on Monday conducted searches in Jaipur, Delhi and two other cities in connection with a tax evasion case against a Rajasthan-based hydro-power infrastructure company as well as establishments linked to two Congress leaders, prompting the party to question the timing of the action at a time the state is witnessing political drama.

The IT Department started the searches in Delhi, Mumbai as well as in Jaipur and Kota in Rajasthan early morning in which around 80 officials besides police personnel are participating.

Officials said the action came against the backdrop of inputs it received about huge cash transactions taking place and the business group's alleged links to these transactions.

The business group, which is under the radar, was awarded the contract to build a dam in Rajasthan in 2018. The IT Department is also conducting searches at premises, including state Congress leaders Rajiv Arora and Dharmendra Rathore, who are considered close to Rajasthan Chief Minister Ashok Gehlot.

Arora is the Vice President of the Rajasthan Congress while Rathore is a former Chairman of the state seed corporation. IT officials conducted searches at Amrapali Jewellers showroom in Jaipur, which is said to be owned by Arora.

Rajasthan is witnessing an intense power struggle between Gehlot and Deputy Chief Minister Sachin Pilot, who claimed support of 30 MLAs.

Pilot did not attend a meeting of the Congress Legislature Party on Monday, as he stepped up attack against Gehlot after he was summoned by police in connection with allegations that the BJP was trying to topple the Congress government in the state. The summon came after police tapped phone conversations of two BJP leaders and later arrested them on Friday.

Congress chief spokesperson Randeep Surjewala, who was sent by party leadership to Jaipur, attacked Prime Minister Narendra Modi and Union Home minister Amit Shah for the Income Tax raids. He said the Income Tax department, Enforcement Directorate and Central Bureau of Investigation are the BJP’s “frontal departments”, but such raids will not topple the state government.

Rajasthan Cooperative Minister Udailal Anjana questioned the timing of the raids and said, "this was done to create pressure. It apparently looks like leaders who are sitting in Delhi are behind these raids."