IRS officer, aide held for bribe were biz partners with complainant

It was a business partnership turned sour that led to the dispute and animosity between a senior Indian Revenue Service (IRS) officer, Dr Amit Kumar Singhal, his close associate Harsh Kotak, and complainant Sanam Kapoor, who is a leading businessman, claim officials of the Central Bureau of Investigation (CBI).

The CBI on Saturday arrested both the IRS officer and his aide for allegedly demanding and accepting bribe.

A resident of Zirakpur in Mohali, Kapoor was partner and director of M/s Copenhegen Hospitality Pvt. Ltd., and also the owner of the pizza franchisee under the name of M/s La Pino’z Pizza owned by M/s Copenhegen Hospitality, which has around 750 outlets across India.

In December last, the 2007-batch IRS officer, who was posted as Additional Director General, Directorate of Taxpayer Services in New Delhi, and his aide Kotak snapped business ties with Kapoor following which a notice from the Income Tax Department was issued to the complainant.

In his two-page complaint submitted to the Superintendent of Police (SP) of the CBI Anti-Corruption Bureau (ACB) in Chandigarh on May 30, a copy of which is with The Tribune, Kapoor wrote that in 2019, Dr Singhal, who was then posted as Joint Commissioner, Customs Department, in Mumbai, approached him and after a few meetings, he (Dr Singhal) entered into master franchisee with M/s La Pino’z Pizza in Mumbai through his partnership firm M/s Parker Impex in the name of his mother Ranjna Singhal and Amit Rattan.

“This was followed by other agreements regarding franchisee for two more outlets/stores with M/s Flevaco (partnership firm of Kotak and his mother Godavariben Amulakhbhai Kotak) and an agreement for another outlet/ store with M/s Mohini Hospitality, owned by Komal wife of Kotak,” Kapoor said.

He informed the CBI that in 2020, Kotak, who, he said, wasa friend of Dr Singhal, replaced Rattan as partner in the firm.

“However, due to unprofessional conduct and material violations of the agreed terms, I had to terminate the agreements with the aforesaid entities in December 20204,” the businessman submitted.

Kapoor bought back three outlets and accordingly, his entire business association with the IRS officer and Kotak ended after making full payments and settlements.

However, a security amount cheque, which Kapoor claimed was supposed to be returned, was not given back at the time of full and final settlement. Kotak had told him that he had misplaced the same and promised to give it to him as soon as he finds it. Kapoor said the cheque was never returned.

“As I stopped all businesses with them, Dr Singhal and Kotak started having personal enmity and agony with me,” the complainant said, while accusing Dr Singhal of using his influence to issue notice under section 131 (1) (a) of the Income Tax Act, 1961, to him on February 18.

Kapoor told the CBI sleuths that his CA was sent to the Income Tax office after receipt of the notice and informed him that he might have to face hefty penalty as the notice has been issued due to the influence exerted by the IRS officer.

“Subsequently, I talked to Kotak on this issue and he asked me to further talk to Dr Singhal,” the businessman said.

On being contacted, Dr Singhal asked Kapoor to meet him in Delhi, where he was posted presently. During their meeting in April, he demanded a bribe of Rs 45 lakh for settling the matter and threatened that heavy penalty would be imposed in case the bribe was not paid, alleged Kapoor.

“I again met Dr Singhal at his office in Delhi and requested him to sort out the matter, upon which he reiterated his demand of Rs 45 lakh bribe and asked me to talk to Kotak in this regard,” the complainant mentioned, while adding that since he didn’t want to pay bribe, he approached the CBI for seeking legal action against the IRS officer and his aide.

Following the receipt of the complaint, the CBI officials deputed Inspector Sonal Mishra to verify the genuineness of the same.

The CBI Inspector briefed the complainant about the verification process. Accordingly, the complainant met Kotak and recorded the entire conversation with both the IRS officer and his aide. Later, the CBI sleuths laid a trap and swooped on Kotak to catch him red-handed while allegedly demanding and accepting a bribe of Rs 25 lakh from the complainant on behalf of the accused IRS officer at his residence in Mohali on Saturday.

Dr Singhal was apprehended from his residence in Vasant Kunj, New Delhi, separately.

A case under sections 61(2) of the Bharatiya Nyay Sanhita, 2023, and Section 7 of the Prevention of Corruption Act, 1988, as amended in 2018, was registered against both the accused at the CBI ACB police station in Chandigarh. They were produced before the designated court in Chandigarh on Sunday and remanded in 14-day judicial custody.