Inquiry to be ordered into tax evasion by housing societies

Bangalore, June 21 (UNI) The Karnataka Government will hold a high-level inquiry into the alleged evasion of stamp duty and registration fees by four cooperative housing societies in the city, Law and Parliamentary Affairs Minister Basavaraj S Horatti informed the Legislative Council today.

Replying to an issue given notice of by JD(U) member Basavaraj Bommai under Rule 330, he assured the House that a high-level inquiry, headed by the Cooperatives Secretary, would be ordered into the evasion to bring to book those officials guilty of failing to take suitable action against the erring societies. The Secretary would be asked to submit a report within a month.

Rejecting Congress member V S Ugrappa's demand for a House Committee probe into the matter, the Minister said the Government was committed to collect duty and fees from cooperative housing socities in accordance with laws.

Earlier, Mr Bommai had alleged that the four cooperative housing societies had flouted Section 38 of the Cooperative Act for many years with the connivance of certain Cooperative department officials, causing loss to the tune of crores of Rupees to the State exchequer. The State Government had in 2001 brought in an amendment to the said section and issued the necessary model bye-laws for the societies, making it mandatory for the societies to pay both stamp duty and registration fees for immovable properties.

Demanding that the Government take steps to collect the revenue from the four societies with fine and take action against the guilty officials, he accused the Government of having no commitment on the issue. He expressed dissatisfaction over the Government's reply and termed it ''misleading and concealing the truth.'' After the Minister gave his reply, acting Council Chairman Sachidanand Khot adjourned the house for tomorrow.

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