Himachal refers Rs 6000-crore tax evasion case of Technomac company to ED

Principal Secretary (Excise and Taxation) J C Sharma said since there had been violations detected under the Prevention of Money Laundering Act, the government has decided to seek a probe by the ED.

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The Excise and Taxation department has detected tax evasion to the tune of Rs 2,200 crore while rest of the money involved was of the banks, Income Tax department and arrears of the EPF. (Representational)

In a move to tighten the noose on Sirmaur-based Indian Technomac Company Limited, a metal alloy manufacturer which is facing Rs 6000-crore tax evasion case currently being probed by the Crime Branch of the state police, Chief Minister Jai Ram Thakur has decided to refer it to the Enforcement Directorate.

Principal Secretary (Excise and Taxation) J C Sharma said since there had been violations detected under the Prevention of Money Laundering Act, the government has decided to seek a probe by the ED. “The investigations into the main case is already underway with the CID. The ED will look into the money laundering charge only,” said Sharma. The company was set up at Paonta Sahib in 2009 but was shut down in 2014.

It allegedly defrauded the state’s Excise and Taxation department and some banks to the tune of Rs 6,000 crore by submitting false and bogus papers relating to procurement of raw material, manufacturing and also annual turnovers. The state government woke up to the fraud only after Assistant Excise and Taxation Commissioner (AETC), Sirmaur, reported the matter last year.

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The BJP government, on return to power, ordered the case to be registered by the Crime Branch, which later arrested its managing director Rakesh Sharma and other officials, including three directors, one of them Viney Sharma, son of a former IAS officer. The case was registered for cheating and forgery on March 22, 2018.

In his order issued on Thursday, the CM also appointed Additional Chief secretary (Finance) Anil Khachi as inquiry officer to fix the responsibility on the officials whose negligence and collusion resulted in the loss to the state exchequer. The Excise and Taxation department has detected tax evasion to the tune of Rs 2,200 crore while rest of the money involved was of the banks, Income Tax department and arrears of the EPF, HPSEB and labour departments and wages of the employees. The financial fraud is the biggest ever detected in the state including an industrial unit.

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