Not trying to evade tax authorities: Lalit Modi

MUMBAI: Former Indian Premier league (IPL) chairman Lalit Modi has accused the Indian government of creating a false impression that he has been trying to evade questioning by authorities on financial transactions of IPL.

Modi has been staying in the UK since 14 May 2010, after the government launched a probe against IPL?s finances.

Modi, in a statement, said he was forced to leave the country when the security provided to him by the police was suddenly withdrawn. He also alleged that the establishment started hitting back at him with a vengeance after his disclosure about Sunanda Pushkar, then Shashi Tharoor?s fianc? and now wife, holding sweat equity in the Kochi franchise of IPL. The disclosure had led to the resignation of Tharoor, the then Minister of State for External Affairs. Tharoor was recently re-inducted as Minister of State for Human Resource Development.

"A series of investigations were started by income tax authorities and after some days I found that without any prior warning, the security cover was suddenly withdrawn leaving me and my family exposed to serious risk to life. I was, in these circumstances, left with no option but to move out of India on the morning of 14th May 2010. Before my security cover was withdrawn, I had co-operated completely with income tax authorities and given my detailed response to BCCI?s show cause notice," he said.

"At this point, the Enforcement Directorate was not even in the picture. The Enforcement Directorate issued its first summons to me on 2 August 2010 seeking certain documents pertaining to IPL contracts and asking me to attend their offices in person. All the documents sought were duly supplied by me. In view of the security risk to me in India I requested that I should answer any questions by way of an interrogatory questionnaire or appear on video link or get to be questioned in person in the Indian High Commission in the UK. These were all valid modes under the law for co-operating but the ED chose to ignore all of them."

Modi says the reports in the Indian press suggesting that the Ministry for External Affairs is requesting assistance from the UK authorities to enforce his return to India for questioning are based on innuendo and mis-information. "The intention is clearly to suggest I am avoiding official requests to co-operate and to give the perception that I therefore have something to hide. The truth of the matter is very different."

He said the tax enforcement wings of the Indian Government, namely Income Tax department and Enforcement Directorate (ED) acting under the provisions of Foreign Exchange Management Act (Fema) started making enquiries without any formal complaint.

"This created the perception that some contravention may have been committed. It resulted in a smoke screen of unsubstantiated and uncorroborated allegations from doctored and selective leaks to the media so that in the ensuing media trial, the objective and hard facts take a back seat. There is no power of arrest or custodial interrogation either under investigations taken under Income Tax Act or Fema and therefore requirement of physical presence can be dispensed with," Modi said.

"However, an impression was sought to be created as if some offence has been committed by me for which I need to be brought to - and questioned in - India. The ED and the Income Tax department come under the Ministry of Finance. For quite some time now I have been making public my views through Twitter regarding the impropriety of re-inducting Mr Shashi Tharoor. The timing of the demand to enforce my return (to India) needs to be viewed in that perspective."

Modi pointed out that along with him other BCCI officials were also party to the Show Cause notices issued by the ED.

"This is not true. The Show Cause notices issued by the ED in 2011 and 2012 were distributed to up to 10 recipients. These include the BCCI itself as well as individuals including current President, N. Srinivasan, S. Manohar, M. Pandove, R. Shetty. These recipients, like me, were officers of the BCCI at the time the investigation is focused upon. I am included in my capacity as IPL Chairman. However the fact that I had no financial powers is entirely ignored," Modi stated.

He also points to the suggestion that the Ministry of Finance wishes to pursue "issues" regarding his own financial transactions. He counters saying that the Show Cause Notices do not, at any point, indicate they are pursuing personal allegations against him individually.

"As a former Chairman of the IPL I have been asked to respond to information contained within the Show Cause Notices relating to the activities of the IPL, a tournament which is run under the auspices of the BCCI and governed by the BCCI accordingly. The IPL Committee has no independent jurisdiction and all matters relating to IPL finances and general conduct ultimately rest within the BCCI and are jointly controlled by the Treasurer and Secretary of the BCCI. My involvement in the investigation has been requested in order to assist the overall investigation. It is not an investigation into Lalit Modi."

He said that the Enforcement Directorate had issued four show cause notices and he has given detailed replies explaining his position. "All these notices state that I can appear through my representative - either a chartered accountant or a lawyer. However no date of any hearing has ever been given by the ED in the last two years.

"On 3rd September 2012, I presented my latest response to various Show Cause Notices in a letter to the Special Director of the Enforcement Directorate. This 46 page document and associated annexures, formed a preliminary reply that was provided to confirm to the authorities my full commitment to my co-operation. In the letter sent through my lawyers, we confirmed that we were prepared to provide an even more detailed response when in receipt of the important, additional documentation we had requested from the E.D. to aid our task of responding. These documents have never been received."

He adds that death threats, relating to any return to India, are still being made as were reported recently in a section of Pakistani media. "The Authorities are aware of the ongoing status of the threats and they have made it clear they cannot guarantee my personal safety or that of my family, if I were to return."

He adds that the revocation of his Passport is an arbitrary and unnecessary infringement of my personal rights and liberty. "It is an act I am challenging through the courts and is therefore sub judice."