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Delhi Lieutenant Governor VK Saxena discloses huge tax evasion in capital, urges for probe

Saxena hinted at the potential involvement of officials from the local GST Department in these fraudulent activities. The LG urged CM Kejriwal to initiate a thorough investigation into the matter.

Delhi Lieutenant Governor VK Saxena discloses huge tax evasion in capital, urges for probe AJR
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First Published Feb 20, 2024, 9:54 AM IST

Delhi, the national capital, has found itself at the forefront of a concerning issue – the highest tax evasion among all states and Union Territories in India. Lieutenant Governor VK Saxena highlighted this disconcerting fact in a letter addressed to Chief Minister Arvind Kejriwal, shedding light on the alarming state of tax governance within the city.

According to Saxena's letter, Delhi has earned the unenviable distinction of having the highest tax evasion record in the country. The revelation comes with startling statistics – a staggering Rs. 3,028 crore of tax evasion has been attributed to 483 bogus firms uncovered in the city. This amount significantly surpasses the state that holds the second position in this unfortunate ranking by Rs 827 crore.

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In addition to unveiling these concerning figures, Saxena hinted at the potential involvement of officials from the local GST Department in these fraudulent activities. The LG urged CM Kejriwal to initiate a thorough investigation into the matter. He proposed that Finance Minister Nirmala Sitharaman lead the inquiry to uncover the root cause and extent of this widespread tax evasion.

The revelation that the national capital leads in tax evasion raises serious questions about the efficacy of tax governance in Delhi. Saxena emphasized that such a situation erodes public trust in the system, highlighting the need for a comprehensive inquiry to address the issue at its core.

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