Gujarat leader of opposition Shri Shaktisinh Gohil has demanded that the Income Tax department should keep strict vigil on industrialists who sign Memorandum of understanding(MOU) worth crores of Rupees with the Government of Gujarat during Vibrant Gujarat Summit. Gohil has sent a letter in this regard to the central Finance minister on 10 December. Gohil has expressed apprehension about tax invasion by industrialists who sign MOU with Gujarat govt. during Vibrant Summit.

Gohil’s contention is that several companies ink memorandum of understanding(MOU) pledging to invest a certain amount in the state and based on these MOUs, the often seek loans from nationalised banks.

“They clearnly display that they have funds on hands or will raise the funds in order to honour the commitment for making investment in the state for setting up new projects, approach the nationalised banks seeking loans worth thousands of crores based on MOUs,” Gohil’s letter says.

“Nationalised banks should be careful in lending to companies that sign MOUs just for raising financial resources from nationalised banks, and then divert these funds to other businesses,” the letter states, adding, “The IT department must undertake a comprehensive survey about the companies sthat have inked MOUs, the investment committed, the actual investment made, and whether they have paid taxes. The tax authorities must recover the taxable amounts in case any irregularity or tax evasion is detected,” he adds.

Gohil has asked the union finance ministry to pass necessary instructions to the various authorities to remain extra vigilant on such business deals which are executed based on MOUs signed during the summit.

Meanwhile, reacting to Gohil’s this move, Gujarat govt. spokesperson minister Saurabh Patel said that this was a live example of how Congress misuses government system to damage Gujarat. Patel termed Gohil’s this act as “shameless”. He said in past Congress had planned to capture power through misuse of CBI, but neither in Gujarat nor in Bihar CBI could save Congess party. Central govt has started harassing Gujarat’s Alang based shipbreakers through misuse of Excise department nowadays. The shipbreakers are on strike against this act for last two days, due to which thousands of workers are jobless.

Patel also pointed out how some time back Tamilnadu’s Congress leader wrote a letter to UPA government demanding to stop Gujarat Chief Minister Narendra Modi from poaching TN industries.