CBI Arrests IT Official, Shapoorji Pallonji Exec in Bribery Case

New Delhi, May 10 (PTI) The CBI has arrested Commissioner of Income Tax (Exemption), Hyderabad, Jeevan Lal Lavidiya, for allegedly accepting a bribe of Rs 70 lakh to settle an appeal in favour of Shapoorji Pallonji (SP) Group, officials said on Saturday.

Lavidiya, a 2004-batch Indian Revenue Service officer, was arrested along with Viral Kantilal Mehta, Deputy General Manager (Taxation) of Shapoorji Pallonji (SP) Group; Sairam Palisetty; Natta Veera Naga Sri Ram Gopal; and Sajida Majhar Hussain Shah, they said.

According to the CBI, Shah was allegedly delivering the bribe to a middleman in Mumbai for Lavidiya, who was also holding additional charge as Commissioner of Income Tax (Appeals Unit-8 and Unit-7) under the Office of the Principal Chief Commissioner of Income Tax, Hyderabad.

"The SP Group has been made aware of a serious allegation of misconduct against an employee of one of our Group Company subsidiaries. The alleged conduct was not with the knowledge of the Group, nor was it sanctioned by it. In fact, this goes against the very values and policies that the Group upholds in its business operations," the company said in a statement.

It said the group is committed to fully cooperate with the relevant authorities in their investigations.

"Given the seriousness of these allegations, the Group has already launched an internal enquiry into the alleged conduct and will take the necessary steps based on the outcome of the investigation," it said.

The CBI registered an FIR against Lavidiya and 14 others and entities on allegations that the officer "in connivance with middlemen was indulging in corrupt and illegal activities of obtaining undue gratification for extending illegal favours in deciding appeals in favour of the private parties whose appeals were pending with him for decision," the agency said in a statement.

A trap was laid and one of the accused middleman was caught while accepting a bribe of Rs 70 lakh on behalf of the Commissioner in Mumbai. Subsequently, Lavidiya and his associates were arrested from Hyderabad, a CBI spokesperson said.

The agency conducted searches at 18 locations in Mumbai, Hyderabad, Khammam, Visakhapatnam and New Delhi, leading to the recovery of approximately Rs 69 lakh in cash, in addition to the bribe amount, the spokesperson said.

All the accused were produced before special CBI courts in Mumbai, Andhra Pradesh and Telangana.

The SP Group statement said it is resolute in its commitment to upholding its 160 year old legacy of conducting business with transparency, integrity and in full compliance with all applicable laws.