Massive tax evasion by cricketers: report

By Sujay Mehdudia

NEW DELHI, DEC. 14. Failure to file income tax returns for long periods, non-disclosure of taxable income, money received through various sources, huge investment in real estate and tax demand exceeding Rs. 1 crore each are some of the highlights of the ``appraisal report'' prepared by the Directorate of Investigations against four leading cricketers in the case relating to match-fixing scandal.

However, the report in the case of the former Indian captain, Kapil Dev, was still under preparation and was likely to be completed within the next 10 days. ``Some loose ends need to be tied up in his case after which his tax demand would be raised against him and his case would be sent for further action,'' sources said. The tax demand, according to rough estimates, was likely to be substantial in the case of Kapil Dev.

The premises of leading players including the former Indian team captains, Mohammad Azharuddin, Kapil Dev, Manoj Prabhakar, Ajay Jadeja, Nikhil Chopra, Navjot Singh Sidhu, Ajay Sharma and some cricket administrators were raided by the Income Tax Department on July 20.

Tax sleuths indicated that the report had details of real estate investments and the kind of evasion indulged in by cricketers over the past many years. Documents relating to hawala transactions and payments made abroad had also been forwarded to the Directorate of Enforcement and the CBI for further action, a senior official told The Hindu.

The report also contained details of how some cricketers got underhand money from sponsors, without the BCCI's knowledge, by under-valuing their contract details. This money was paid to them in cash. Similarly, a large number of bank accounts, some fictitious, maintained by the cricketers and bookies were also unearthed. Sources said the files relating to Ajay Jadeja, Manoj Prabhakar, Nikhil Chopra and Ajay Sharma, had been forwarded to the Central Assessment Circle for launching income tax proceedings against them for outstanding tax demand against their names. ``During the course of investigations, it has been found that these cricketers indulged in massive evasion of taxes and did not reflect their true incomes in their tax returns. In fact, Ajay Sharma is learnt to have not filed his returns for the past many years for mysterious reasons,'' the official added.

In case of Manoj Prabhakar, Ajay Jadeja and Ajay Sharma, the tax demand was in the region of more than Rs. one crore, while it was a little less in the case of Nikhil Chopra. It is understood that the assessment circles concerned would issue show cause notices to the cricketers and they would also be asked to file block returns for the last 10 years as their previous returns did not reflect their true income. It is learnt that income tax authorities had come across some documents suggesting that certain players had received money from bookies on foreign soil. It has forwarded a request to the CBI and the Enforcement Directorate to look into the possibility of foreign bank accounts of some bookies and players and also probe the payments made abroad.

IT authorities in Patiala have also completed investigations into the raids conducted at the premises of former Indian team opener Navjot Singh Sidhu and have submitted the report to the assessment officer for necessary action.

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