Mahesh Shah who declared Rs 13860 crore under IDS, nabbed dramatically from TV studio in Ahmedabad

Ahmedabad: The ‘mysterious’ less known businessman from Ahmedabad, Mahesh Shah who had declared a whopping Rs 13860 crore of black money minutes before the expiry of the deadline on the last day of the income declaration scheme (IDS) on September 30, but baffled everyone including the IT sleuths as well as the Chartered Accountant’s firm which had helped him filing his declaration by not turning up to pay the tax was arrested in a dramatic manner from the studio of a local Gujarati channel here today.

The police and IT sleuths entered the studio of the ETV Gujarati, near SG highway in the city midway during his interview by the anchors of the channel. He was later taken to Sarkhej police station for further action.
Shah earlier today suddenly appeared in Gujarati news channel studio and claimed that the money was not his own and belonged to a group of people. The channel aired his interview for more than an hour.

67 year old Shah, who is resident of Ahmedabad and also owns house in Mumbai apart from his four bedroom flat in a apartment in Jodhpur area, claimed that the money that he declared was not his own and belonged to a group of people. He said that the actual money could have been more than what he declared. Shah, who claimed to be a land broker, said that he declared their money in his name to make some easy money. But as they refused to give the money in the last moment, he could not pay the Rs 1560 crore installment of tax.

He also claimed that he will divulge the names of those who had offered him money to the income tax department very soon.

‘It is 100% correct that the money was there and belonged to a group of people who were neither my old friends or acquaintances. The tax as agreed was to be paid but when they refused in the last moment, I become perplexed and could not go to the IT department. But now I will disclose the names before the appropriate agency,’ Shah, who refused to divulge the names in public despite repeated queries said.

To yet another query, he said that there was no criminal among those who had agreed to deposit money through him but he did not rule out the possibility of some politicians, businessmen and officials being among those who had offered him the money. He also categorically said that his CA was completely innocent in the matter. He said that he now repent about his mistake and divulge the names. He also expressed anger about the way the media allegedly handled his family members.

He also asked for security to his family. Shah said that he was also aware that his residence had been raided by the IT but had not visited the residence since. ‘I was out of town and was in Mumbai for the past 10 days.

The IT sleuths and the CA firm Appaji Amin and Company which were also surprised at his last minute declaration of such a large sum that too in cash were equally baffled. He had not paid even a single penny despite numerous reminders and the expiry of the deadline of paying the first installment of the tax (25%) at around Rs 1560 crore by November 30. What was more baffling was that he had reportedly gone ‘underground’. He, however, refuted this today and said that he came here today from Mumbai and directly reached the studio. He also said that his son Monitesh had clearly said that I had not absconded.

His son had yesterday claimed that he was out of Ahmedabad for last one month contrary (to the period of 10 days his father said today).
67 year old Shah, who is the resident of Ahmedabad and also owns house in Mumbai (though only a few properties and seemingly a very simple background), had declared Rs 13860 crore of black money, interestingly all in cash, just five minutes before mid night of the last date of the IDS here. He is neither a well known businessmen nor a corporate figure and said to have been involved in land business. Interestingly he has reportedly not filed his IT return for the last two years and the last declaration puts his balance sheet at only Rs 4.5 crore.

He had agreed to pay a tax of Rs 6237 crore as 45% penalty according to the provisions under the scheme.

Recently, IT department had conducted raids at his offices and residences in Ahmedabad, Mumbai and some of his acquaintances in Rajkot. Some documents have also been siezed.

His CA Tehmul Seth who had also faced an IT raid on his office had repeatedly said that his client had contacted him on the last day of the IDS and he had taken him to the income tax commissioner who cooperated and allowed him to declare his income under the scheme .

‘Shah, who is not a regular client and known to us since 2013 only told us that all the money is in cash and he agreed to pay the tax under the scheme in stipulated time and installments. I had given him form number 2 on October 14 after completion of initial procedures and he was in touch with me and told me every time I talked to him that he would pay the tax soon. We also suggested him to pay at least part of the tax so that the IT sleuths do not take any action against him. But he did not pay any tax. He also did not tell us as to where the money is. He was also assured of all kind of protection for carrying such a huge amount of cash money to IT office here. We had no reason to doubt anything but we are also equally surprised now. Whatever information we had, we have passed it to the IT department. His phone is now switched off,’ the CA said adding that Shah is a resident of Ahmedabad but is having some business in Mumbai and other place also.

He also said that Shah did not tell him whether the entire money belonged to him or not. The CA had said that doubts are now being raised whether he was having any money or not but as he had himself come forward for the declaration we had never doubted anything like this and still feel that his claims were not hollow.

Shah had not mentioned his profession in the declaration giving rise to speculation that he had tried to launder the money of certain big fishes.

DeshGujarat