A senior citizen who owns two flats in the Prahlad Cooperative Housing Society (CHS) located at Santa Cruz has written to the Income Tax office and the Prime Minister's Office (PMO) against his own housing society's managing committee over alleged tax evasion. An email copy of the letter has been acquired by the Free Press Journal.
Hasmukhrai Panchmatia alleged that for the past many years, his society has been paying huge amounts by cash and bearer cheques without deducting tax deducted at source (TDS) to vendors. He further alleged that the society has never paid IT returns, GST and other taxes. Panchmatia has further alleged in his letter that the society's accounts for 2013 were rejected due to tax evasion, bogus bills and other irregularities. “Thereafter, the accounts were never prepared.
In August 2021, just for the purpose of redevelopment, fake accounts were prepared and adopted. Here, all financial irregularities and tax evasion were buried. Office bearers mislead the IT department and society members, falsely certifying that the accounts were true and as per the law,” says the letter.
It also alleges that in his letter dated December 26, 2018, the secretary himself stated that all the accounts were bogus and thus in violation of the law. “Several times, we have requested the office bearers not to evade any taxes or violate any laws but they have neglected us," Panchmatia alleged. While the housing society committee refuted the allegations made by the flat owners, Panchmatia, along with another complainant named Gurbux Adwani, 49, jointly wrote letters to government authorities and issued public notices in newspapers about their lack of confidence in the committee following their false statements and tax evasion.
The letters state that the committee cannot be trusted to handle their society's redevelopment project at a proposed Rs 400 crore. Panchmatia also expressed that they would have faith in the redevelopment project only if he or Adwani is made a signatory authority by the committee.
Meanwhile, the counsel firm Divya Shah and Associates, representing the housing society's current managing committee, has issued a public notice stating that the allegations are false.
“We absolutely deny lying to government authorities and violating any law without hesitation. In fact, we have been absolutely transparent and are updating the Registrar with every small development taking place in our society, including audit and redevelopment. All decisions taken have been passed by the AGM SGM,” the counsel firm said on behalf of the managing committee. It further added that the elected committee has full majority and consent of the other society members to carry out redevelopment.
“If at all the complainant (Panchmatia) still finds any irregularities then he can file a case in the court and follow proper legal proceedings,” it said. Panchmatia has informed the FPJ that he will soon file a case against the society committee in the Bombay High Court.
