Finance Minister T.M. Thomas Isaac has lashed out at the Income Tax (I-T) Department for Thursday’s inspection at the headquarters of the Kerala Infrastructure Investment Fund Board (KIIFB) here and dared the I-T Department to register a case against the funding agency.
Addressing a press conference here on Friday, the Minister, who is also vice chairperson of KIIFB, said the 12-hour inspection by 15 I-T officials was a “classic example of hooliganism” and an attempt to “derail the development initiatives” funded by KIIFB. The inspection was on the issue of TDS (tax deducted at source) on the payment to contractors who were entrusted with KIIFB-funded works by the special purpose vehicle (SPV).
Altercation
Dr. Isaac said KIIFB Chief Executive Officer K. M. Abraham and the fund manager were questioned and their statements recorded. I-T Commissioner Manjit Singh took over questioning at 9.30 p.m. and Mr. Abraham and Mr. Singh got into an altercation during the raids.
The KIIFB officials briefed the I-T sleuths on the project and finance management system. “The offer to share password for the systems was rejected by them. We will give other details by March 29,” he said.
“They come to the office after informing the media, but say it’s not a raid, not a search. Then what is their intention? Their aim is to defame KIIFB,” Dr. Isaac said.
The Minister said KIIFB provided funds to SPVs set up under various departments and the SPVs select contractors for their projects. KIIFB has no direct dealings with the contractors. “The SPVs have already handed over ₹73 crore to the I-T as TDS and our inspection shows there is no default,” he said.
The Minister said the I-T Department’s view is that they have not received the money and KIIFB has to pay the dues.
Dr. Isaac said the I-T team came without doing proper homework and was acting on the basis of the “orders of masters in Delhi.” The Centre intended to defame KIIFB as it was implementing development projects in Kerala. “This is not the last (move). We are expecting the ED before the Easter holidays. We will take up the issue politically and to the people,” he said.
