NEW CSN SCAM UNVEILED

Expensive TV equipment undervalued :
Govt defrauded of millions in taxes:
Ex senior port sector official under probe :

A senior public official in the ports sector, under the previous government is under investigation for a massive tax fraud, involving the Carlton Sports Network (CSN) channel, police sources told the Sunday Observer.

CSN reportedly bought television equipment worth £ 14,0000 from Arena Television in Reddhill, Surrey. The value of the state-of-the art television equipment is approximately Rs 30 million.

However, when paying Customs duty, the equipment had been valued at £ 3,200 (Rs. 665,600), a multi-million rupee tax fraud.

Highly placed Financial Crimes Investigation Department (FCID) sources said the government had lost a staggering tax revenue as a result of the tax scam due to undervaluing the equipment bought from the UK.

The original invoice for the transaction with Arena Television had been made on May 28, 2012, months after the channel was set up.

It has now been revealed that influential State officials had acted as the ‘go-between’ of CSN, to facilitate clearance.

A senior police officer said the official had intervened following a request from a top decision-maker of the company, who is already in custody in connection with the investigation.

He said the police found the documents and e-mails exchanged between the relevant parties pertaining to the deal.

“A statement will be recorded from the official in the near future on his alleged involvement in the tax scam. If necessary, action will be taken against him based on the recommendation of the Attorney General’s Department,” he said.

The official involved in the ports sector was known to be a close ally of the former First Family, FCID sources said.