I-T scrutinises Vibrant Gujarat MoUs

NEW DELHI: The Income-Tax Department's scrutiny of the Memoranda of Understanding signed by corporate entities with the Narendra Modi government at the Vibrant Gujarat Summit has invited charges of a political witch-hunt from BJP. The party said it was an attempt to scare away investors from the state.

The I-T Department has slapped a notice on the Gujarat Government seeking details on the 7,936 MoUs it signed with several investors to bring in an anticipated nearly 21 lakh crore investment in various projects. The development threatens to aggravate the already-worsening ties between Congress, which leads the UPA Government at the Centre and BJP.

"We want to ask if this is a routine notice or is it to scare away investors," BJP's deputy Rajya Sabha leader SS Ahluwalia said at a press conference here. BJP released copies of the letter sent by I-T Department which said an inquiry in connection with this year's Vibrant Gujarat Summit was pending and "details of MoUs signed by various corporate entities with the government of Gujarat need to be examined". It sought such details for the summit held last year.

In the state assembly, Industries Minister Saurabh Patel accused the Congress of trying to scuttle the deals. "The country and the world all have appreciated the success of the Vibrant Gujarat Summit. It is unfortunate that the I-T Department has initiated an inquiry and asked the state to furnish details of MoUs and investors where investment above 1000 crore was pledged," Patel said.

He asked the Manmohan Singh government if such letters with regard to the investment proposals have been sent to all states or whether Gujarat was being singled out. "Has Gujarat been taken as a special case," Patel asked.

When asked if the state had replied to the I-T letter, Patel said, "We will get into action now." Outside he told reporters that the letter was the outcome of attitude of Opposition Leader Shaktisinh Gohil who had been "constantly complaining" to the Centre. The letter, dated February 17, signed by Deputy Director (investigations) Anurag Sharma, also said the inquiry is being conducted under Section 131 (1A) of the Income Tax Act.

Corporate entities, including Anil Ambani-led Reliance Group, Ahmedabad-based Adani Group, Essar, Larsen and Toubro and Mahindra & Mahindra made mega investments in key sectors.