SHILLONG: After last Saturday’s I-T raid on benami petrol pumps, the Executive Committee (EC) member of Khasi Hills Autonomous District Council (KHADC) in-charge of trade, Paul Lyngdoh said steps are being taken to prevent benami transaction in the state while maintaining that its violations have been a tricky one.
He said, “We have insisted that a local businessman who owns business should be ready with book of accounts, volume of transaction, whenever the Enforcement staff of the Council conducts an assessment. The businessman should also declare in the presence of a First Class Magistrate that his business is authentic.” He maintained that such a step will prevent non-tribals from taking advantage of tribals as the name of the (local) businessman is clearly given in the declaration by way of affidavit that will curtail benami transaction.
This is in view of the recent IT raid conducted on petrol pumps in parts of the state where Rs two crore was seized from businessmen carrying out benami business in the name of tribals.
“Complaints were received that the petrol pump construction works were sub-standard. And when we try to find the contractor, we found out that he is from Bihar or West Bengal,” he said.
Lyngdoh went on to add that the construction of civil works should be handed over to local contractors to generate revenue
The IT department carried out swift action and raided the houses of businessmen in the state allegedly involved in running petrol pumps managed and controlled as benami properties.
The action by the Directorate of Investigation of Income Tax, North East has exposed long existing racket by some unscrupulous businessmen who have been exploiting local citizens of Meghalaya and running petrol pumps to avoid paying income tax in the name of income tax exemption provision enjoyed by the tribals.
As for the Benami transactions, he said the Trade department has taken steps by sending letters to Deputy Commissioners to not issue No Objection Certificate (NOC) unless the applicants secure the trade license from KHADC.
When asked, he said the KHADC will follow the Benami Act, 1980 which is applicable throughout the state.
Despite the law, Benami transaction is thriving even as there are collusion between indigenous people and their non-tribal business partners. To this, Lyngdoh said it is an act of connivance and both groups are partners in crime.
