CHENNAI: Gutka trade in Chennai flourished despite a ban imposed by the State, as the merchants allegedly bribed the entire chain starting from lower level officials to senior officers in city police, corporation, Food Safety and Central Excise, and even the minister.
According to the statement given last year by Madhava Rao, one of the partners of MDM brand Gutka which was searched by the Income Tax department, the State health minister allegedly received a total payment of Rs 42 lakh from him (Rs 14 lakh for three months from April to June 2016) for turning a blind eye to manufacturing and sale of Gutkha that was banned in Tamil Nadu.
The other names in the statement include the then Police Commissioner of Chennai, who was paid Rs 60 lakh in three installments – on April 21, May 20, and June 20, 2016.
“These are the incidental expenses incurred by us as we are running the business of manufacturing and sale of gutka which is not legally permitted in the State,” Rao told Income Tax officials after documents were seized from his accountant Yogeshwari’s residence. The minister and police commissioner were allegedly paid through a person named Rajendran, while the payment to Central Excise department was done through one Nandakumar.
“The Central Excise department officials got a total of Rs 16 lakh as bribe,” Rao revealed to Income Tax officials.
There is also a noting wherein the police assistant commissioner of Red Hills was paid Rs 30 lakh from April 5 to June 2, 2016. Similarly, councillors of Chennai Corporation, too, were paid Rs 14 lakh from April 4 to July 5, 2016.
Similarly, the food safety department, which was to implement the gutka ban, was paid Rs 35 lakh (from April 6 to July 5, 2016) by the trader so that his business could go on smoothly.
Income Tax sources told Express that the documents were a year old and officials had contacted the State government with their findings. It is learnt so far no action has been taken in this regard.
Tamil Nadu had banned the manufacture, storage and sale of the carcinogenic chewable forms of tobacco in 2013.