LUCKNOW: Amid charges and counter-charges by the political parties and the reports over the seizure of huge amounts of cash stashed on the Kanpur and Kannuaj premises of businessman Piyush Jain during the last couple of days, the Directorate General of GST Intelligence (DGGI) issued a clarification saying that the total amount of cash in the ongoing case recovered was kept as case property in the safe custody of the State Bank of India pending further investigations and the business had not made the payment of Rs 52 crore as penalty.
Earlier, there were reports that the DGGI had considered Rs 177.45 crore recovered from the Kanpur premises of the businessman as the turnover of his earnings and had levied a penalty of Rs 52 crore on him for tax evasion. The reports in sections of media had also claimed that the businessman had made the payment of R 52 crore as a penalty and now to secure a bail would be easier for him.
Currently, Jain is lodged in Kanpur district jail on a 14-day remand. He was arrested under Section 67 of the CGST Act on December 26 and was sent to jail by the court under Section 132 of the CGST Act. A case of tax evasion of over Rs 31 crore was registered against him.
However, clearing the air on Thursday over the recovery and also in the context of ongoing investigations into M/s Odochem Industries, Kannauj, owned by Jain, the DGGI’s release said that a total cash of Rs 197.49 crore, 23 kg of gold, and offending goods of high value were recovered from two premises owned by Jain.
“The reports with regard to the DGGI deciding to treat the cash recovered as the turnover of the manufacturing unit and proposes to proceed accordingly are purely speculative,” said the release. It added that reports had also wrongfully stated that after admitting his liability, Piyush Jain had, with the approval of DGGI, deposited a total amount of Rs 52 crore as tax dues.
“It is made out as if the department has agreed with the deposition of Shri Piyush Jain and finalised the tax liability accordingly. These reports are purely speculative, without any basis and seek to undermine the integrity of the ongoing investigations which are being carried out in a most professional manner based on specific intelligence against the party,” said the release.
It further said that no deposit of tax dues was made by M/s Odochem Industries from the seized money to discharge their tax liabilities which were yet to be determined. “Further, the voluntary submissions made by Shri Piyush Jain are a subject matter of ongoing investigations and any view on the source of cash seized by the department and the exact tax liabilities of M/s Odochem Industries or other parties involved in the investigation shall be taken on the basis of appraisal of evidence collected from various premises during the searches and the outcome of further investigations,” the release added.