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Vibrant Gujarat Summit deals under I-T dept scanner

Last Updated: Tuesday, March 15, 2011 - 23:50

Gandhinagar: The Income Tax department has
initiated an inquiry into around 8,000 MoUs signed by several
investors and the state government at this year`s high profile
Vibrant Gujarat Summit(VGS) to bring in an anticipated Rs 21
lakh crore investment.

Minister of State for Industries Saurabh Patel while
revealing the IT decision in the state Assembly today blamed
Congress for this and asked why Gujarat--which is ruled by
BJP--is being targeted by the Centre as a "special case". The
summit was touted by the state government as a big success for
Chief Minister Narendra Modi.
"We have received a letter from the Income Tax
department seeking information about all the memoranda of
understanding (MoUs) signed during the VGS 2011," Patel told
the house.
Details of VGS held in 2009 too have been sought, he

Patel alleged that this was proof that Opposition
Congress was creating hurdles in Gujarat`s progress.

I-T department`s letter states that an inquiry in
connection with the VGS 2011 is pending, and "the details of
the MoUs signed by various corporate entities with the
Government of Gujarat need to be examined".

The letter, dated February 17, signed by Deputy
Director (investigations) Anurag Sharma, further says the
inquiry is being conducted under section 131 (1A) of the
Income Tax Act.

"It is unfortunate that because of the attitude of
Leader of the Opposition (Shaktisinh Gohil) and his constant
complaints to the Centre, the I-T department has sent us a
letter," Patel told reporters after coming out of the

"I want to ask the Central government, has it sent such
letters with regard to the investment proposals in all the
states, or has Gujarat been taken as a special case," Patel

When asked if the state had replied to the I-T letter,
Patel said, "We will get into action now."

"The country and the world... all have appreciated the
success of VGS 2011. It is unfortunate that I-T department of
the country has initiated an inquiry and asked the state to
furnish details of MoUs and investors where investment above
Rs 1000 crore was pledged," he said.

"This is injustice to the state and the people of
Gujarat," the minister added.

As many as 7,936 MoUs, drawing investment to the tune
of Rs 20.83 lakh crore, were signed by the state government at
the VGS 2011, held on January 12-13.


First Published: Tuesday, March 15, 2011 - 23:50

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