Unnamed complaint letter led to Sanghai arrest

KATHMANDU, DEC 06 -

It was an unnamed complaint filed at the National Vigilance Centre (NVC) some two months ago that led the arrest of Govinda Sanghai, executive director of the Triveni Group, on Tuesday.

The group, which has interests in banking, insurance, manufacturing of plastic, spinning, synthetic, textile and tea, and trading of consumer durables, had participated in a tender called by the Dairy Development Corporation (DDC) on July 1 for the supply of sachet crates. Sanghai participated in the tender in the capacity of director of Triveni Plasto Polymers.

As the NVC carried out its investigation into the case based on the complaint, the anti-graft body under the supervision of the Prime Minister found the tax clearance documents submitted by Sanghai were ‘counterfeit’. It is necessary to submit tax clearance documents to participate in tenders called by government entities. “We tallied his tax clearance documents with the ones at the tax office concerned and found that they were fake,” said NVC Spokesperson Krishna Poudel. “The names of the tax officers and permanent account number (PAN) mentioned in his documents never existed.”

According to Poudel, the NVC then wrote to the Central Investigation Bureau (CIB) of Nepal Police a month ago for further investigation, suspecting involvement of tax office employees. Further investigation by the police also confirmed that the documents were counterfeit.

Uttam Bahadur Karki, Senior Superintendent of Police at the CIB, said Sanghai’s involvement in forgery of documents ‘has been proved’. “Investigation is underway to find out whether he is involved in other illegal activities too,” he said.

Police have said they will soon file a case in the court against Sanghai. The documents submitted by Sanghai showed they were issued by the Taxpayers’ Service Office No 2 at New Road, but the police investigation revealed the office never issued tax clearance certificates to Sanghai’s firm. “We are yet to discover how Sanghai managed to prepare such fake documents,” said another police official, suspecting the involvement of a ‘big fake racket’.

However, officials of the Inland Revenue Department (IRD) denied to disclose the due taxes that Sanghai owes to the government, saying a separate investigation was underway.

Police nabbed Sanghai the same day Finance Minister Barsa Man Pun instructed the IRD and the Department of Revenue Investigation (DRI) to take stern action against tax evaders at a meeting of the Central Revenue Leakage Control Committee. “The instruction of the Finance Minister and the arrest of Sanghai is not just a mere coincidence,” said a ministry official. “His arrest suggests that a large number of business people are involved in such illicit practices.”

Although Sanghai’s case is first of its kind, it has alarmed the tax administration about the possibility widespread illegal business practices, according to IRD Director General Tanka Mani Sharma. “We are planning to conduct an in-depth investigation,” he said, adding the IRD has initiated a study to find out the possible involvement of tax officials from Taxpayers’ Service Office in such activities.

Avoids jail after hospitalisation

With hospitalisation becoming the most popular way to avoid jail by the rich and influential, Sanghai too adopted a similar strategy.

The Kathmandu Metropolitan Police Range (KMPR), which had planned to register a case against Sanghai in the District Court on Wednesday, could not do so after Sanghai was taken to the hospital for medical treatment. Police sources said Sanghai was taken to the Katmandu Metropolitan Police Range, Hanumandhoka, for further interrogations right after his arrest on Tuesday. But he complained of chest pain and was rushed to Bir Hospital the same night. He was then taken to Gangalal Hospital, Maharajgunj, and then to Norivc Hospital, Thapathali.

“We have admitted Sanghai at ICU and he is under constant medical attention,” said a Norvic Hospital source. “Although nothing has been diagnosed so far, we cannot say he is alright.” “His case will be registered in the court once he is discharged from the hospital,” said a police source, adding Sanghai, however, Sanghai ‘will not be spared’.

Source: The Kathmandu Post