Retired I-T official and BJP leader PVS Sarma booked by Surat Police on complaint by IT department

Surat: Umra Police in Surat has booked former Income Tax officer, former Surat Municipal Corporation Councillor and vice-president of Bharatiya Janata Party (BJP) Surat unit, PVS Sarma (Venkata Satyanarayana Sarma Pasumarthi) under IPC sections 465, 468, 471, 420, 120B. Police has also booked Sarma aide Sitaram Adukiya under same sections.

According to complaint filed by an Income Tax officer, Sarma and Adukiya were running Sanket Media Pvt Ltd from Savera complex in Udhna area and publish Satyam Times newspaper in Gujarati and English languages. They had purchased low quantity of row material but filled false entries of higher number of purchase from Mahesh trading company and other bogus companies. They created fake documents and showed inflated circulation figure in order to cheat DAVP (Directorate of Advertisement and Visual Publicity) and other government agencies for Rs. 70 lakh and private advertising companies for Rs. 2 crore.

According to Dr. Pemmayya KD of Income tax department (Deputy Director, Investigation Unit-1), private inquiry was launched against PVS Sarma based on information on disproportionate assets and a satisfaction note was prepared. Search operation at PVS Sarma’s place and related premises was carried out on 21 October this year under IT Act section – 132 through 12 teams, each consisting of 10 persons. Evidences collected during the operation suggested that Sarma and Adukiya were director of Sanket Media pvt ltd. As per computer books of accounts, Gujarati newspaper Satyam Times run by Sarma and Adukiya would publish 23,500 copies while English version would publish 6000 to 6300 copies. However it appeared that row material purchased was very less. On the basis of documentary evidences, it was found that actual copies printed were only 300-600 in Gujarati and zero to 290 in English.

When questioned, the office manager, Mukhtar Baig said that inflated print order was shown in order to get more rates of private and government ads. When checked, book accounts showed that Rs. 2.43 crore row material was purchased from Mahesh trading and company during 1 October 2013 to 21 October 2020. However when IT sleuths sought bills, voucher, goods entry register, receipt etc, it was not available. When inquired about the address of Mahesh and Company, it was shown as 6/1129 Bhanusadan Smeuti building, Daliya sheri, Mahidharpura in Surat. When checked physically, it was found that there was no such company for supply of row material. The location was actually Sarma’s Chartered Accountant Ashok Adukiya’s old office. When questioned, Ashok Adukiya revealed that there was no such company as Mahesh trading on said address. This proved that a bogus company’s name was used as row material supplier.

Later in search operation, when accounts were checked again at Sanket Media pvt ltd office, all entries were below Rs. 20,000 for row material payment. While account book suggests that Mahesh trading was paid through the bank, the bank statement of Sanket Media doesn’t show any such entries. As per the account book, cash deposit entries were done prior to cheque payments, but no such entries have been found in the bank statement.

According to complaint draft, on analysis of books of account it was found that there were several other bogus companies other than Mahesh trading, such as Krishna paper, Sitaram paper, Vijay paper etc. Total bogus entries were worth over Rs. 3.98 crore. Manager Mukhtar Baig in his statement said that entries were shown in order to increase the circulation of newspaper. Inflated fake circulation figure was reported to DAVP and other government agencies in order to get more advertisement revenue. Manager Baig told IT investigators that bogus entries were made by order of PVS Sarma.

During the search operation, the department also searched Mumbai based company that had given Rs. 90 lakh to PVS Sarma as salary and commission. When inquired, employees and accountant of company said they had never seen Sarma in the company and the payment was made by order of company director Kaushal Khandeliya. Interestingly Sarma was Councillor of Dumbhal ward of SMC during same period of 2010-15.