EOW begins probe into tax evasion scam, questions MCG officials

GURUGRAM: The economic offences wing (EOW) of Gurgaon police has taken up the probe into a tax evasion scam, wherein several 'commercial' properties had been fraudulently registered in the 'residential' category with the connivance of some civic officials, causing losses of at least Rs 6 crore to the corporation.

An EOW team visited the MCG tax department a couple of days ago and questioned a number of officials there, said a senior MCG official, without elaborating on the details.

The alleged scam came to light in August when a zonal taxation officer of the MCG filed an FIR at Sadar police station, in which initially six properties were mentioned for alleged tax evasion. Later, seven more properties were included in the complaint. Preliminary probe suggested these frauds took place between August 2015 and April 2017.

While the police are still investigating the scam, MCG officials claimed owners of around 100 commercial properties, with the connivance of certain civic officials, had been evading taxes by listing their properties in the residential category. While commercial properties are taxed at Rs 6-7 per square yard, the rate for residential properties is Re 1.

"Most of these tax evaders do commercial activities, such as running PG accommodations, from their residential units. But some officials at the MCG tax department seem to have taken money to show that those properties were being used purely for residential purposes so that their owners did not have to pay hefty taxes," said another MCG official.

Police sources said currently, they were focusing on the role of MCG officials, if any. More officials would be questioned in the coming days. However, the property owners/residents, who had already been identified as defaulters, have not been named as accused yet, and their involvement or the extent of it would get clear during the investigation, said a senior police officer.

"Preliminary probe suggests employees who were hired on contractual basis from a third party were involved in the scam. Some of them are no longer working at MCG. The role of some senior MCG officials is also being probed and they too will be questioned," said the officer.