Rahat Fateh Ali Khan paid Rs 15L per song on the sly: DRI

MUMBAI: Rahat Fateh Ali Khan sang in Hindi movies for free as a goodwill gesture, according to documents found at the home of his event manager Chitresh Srivastav, officials said on Monday. Directorate of Revenue Intelligence (DRI) officials, however, don't believe these and say payments of Rs 15 lakh per song were made surreptitiously.

DRI officials searched Srivastav's Oshiwara residence and Lokhandwala office on Monday and found copies of agreements between film producers and Khan where he sang without charging a fee. Two of these movies had won critical acclaim. Officials also found Rs 50 lakh and $5,000 during the search.

Srivastav's Eyeline Telefilm and Events handled Khan for a show organized by religious leader Rakesh Maharaj in South Africa in October 2010. A diary found during the search also showed cash payments to several Bollywood artists which, officials believe, are not accounted for. One is a former actress, still renowned for her dance, and another actress known for her item numbers.

A controversial bhangra singer's name was in the diary too, said sources.

Officials say for shows overseas, organizers pay only part of the fee to artists to reduce the tax burden. They have to show remittances which are taxable. In India, they collect the balance in cash and dodge taxes.