Dainik Bhaskar: Serious Allegations of Tax Evasion
By A Special Correspondent
First publised on 2021-07-26 05:18:10
About the Author
The Income Tax department has issued an official statement alleging tax evasion by the Dainik Bhaskar group to the tune of Rs 700cr in the last six years and other irregularities in operations. The department has alleged that it has found evidence of benami dealing, cash routing and other illegal activities during its recent raid. The Bhaskar group has denied all allegations and said that it was surprised that such a statement was issued even as the raid was going on.
The major charge against the Dainik Bhaskar group is that it was operating bogus companies in the name of relatives and employees, most of them without their knowledge and consent, to raise false bills for manpower supply, transport, logistics and civil works in order to siphon profits and route funds. It alleged that the relatives had signed papers willingly but they had no control over the companies floated while the employees had signed documents and provided their identification details on good faith and did not have any inkling that such companies were being operated in their names.
Other alleged irregularities said to be found by the Income Tax department include transferring funds from listed companies to closely-held companies, providing loans to sister concerns at 1% interest, engaging in unrelated business activities, siphoning off funds from loans procured from banks and accepting immoveable properties as payment against advertisements and then selling these properties by taking a part of the payment in unaccounted cash.
Although these are just allegations, they are serious enough to warrant a deeper investigation. If the income tax department is able to tie the loose ends and prove the allegations, the Dainik Bhaskar group will be in serious trouble. It will then not be able to take the moral high ground of being a media entity that is being persecuted for honest reporting and asking difficult questions. For the law of the land is same for all. If it has violated the law and engaged in irregularities, it needs to be prosecuted for that.
