IT Dept tightens noose around Koda, conducts nationwide raids

Vijay Deo Jha | Ranchi

RANCHI | Wednesday, February 17, 2010

The Income Tax (IT) Department, on Tuesday, conducted raids at nearly 70 places in 13 States of the country in connection with the money laundering of more than Rs 2,500 crore involving former Chief Minister Madhu Koda and Co. The IT Department conducted raids after a gap of more than three months.

Raids were carried on the premises of Manohar Lal Pal; private secretary of the Jharkhand Chief Minister Shibu Soren.

The IT team also conducted raids on the premise of members of the Jharkhand State Electricity Board (JSEB) including SN Choudhary and former chairmen BM Verma, VN Pandey and HB Lal.

Raids continued till late evening. Sources in the IT Department termed the raids as successful. “In comparison with the raids conducted on October 31 last year this time we got clinching evidences of the alleged money laundering and scams in the allocation of mines and rural electrification work in Jharkhand. We have got some more crucial documents and more clinching evidence,” a senior IT officer said requesting anonymity.

The house of retired IAS and former Mines Secretary Jaishankar Tiwari in New Delhi was also raided. Tiwari, was Mines Secretary when Koda was the Chief Minister.

The list included State Pollution Control Board secretary RK Sinha and BB Singh Director Mines. The premises of Sailesh Kumar and Abhisek Rajput in Jamshedpur and Chaibasa were also raided in this connection. Both of them are close associates of Binod Sinha, the right hand of Koda. Sinha has been absconding after similar raids jointly carried by the Income Tax Department and Directorate Enforcement on October 31 last year.

The premises of two other persons Arun Jha and Ajay Jha, close associates of Sinha were raided in Chaibasa.

In Ranchi, a jewellery shop ‘Kuldeep Jewellers’ was raided by the team. Sources in the Department claimed having evidence that a top politician of the State, presently in judicial custody, was the business partner.

Raids were conducted in Ranchi, Jamshedpur, Chaibasa, Patna, Pune and other places.

The houses of Manohar Pal, situated at Kanke in Ranchi and Jamshedpur were also raided. Pal whose house was earlier raided by the CBI last year was top on the list for his dubious connection with Rohitas Krishnan; owner of Quantum Powertek. The company is alleged to have committed vast irregularities in rural electrification work. The IT Department has also been investigating the business connection of Pal with ‘Samridhi Sponge Factory’ where his son Tarun Pal is reported to be on the board of directors.

Krishnan is reported to be absconding. In the last Assembly election the company is alleged to have managed the election fund for the candidates of Koda.

An IT official said that Pal had a deep connection in the mega scam of the rural electrification project in Jharkhand. Sources said that some documents and details of the transactions were recovered during the raids.

Pal is alleged to have used his clout for the appointment of HB Lal as the chairman of JSEB, at the stance of Krishnan, after Soren became the Chief Minister in 2008.

During the raids the IT Department seized vital documents at the premises of these JSEC members indicating fraud in rural electrification work, sources claimed. The IT Department is reported to have raided the premise of a company involved in rural electrification work.