IRS Officer Demands Bribe Of Rs. 15 Crore – Busted!

Yet another senior IRS officer has fallen into the clutches of the CBI. He demanded a bribe of Rs. 15 crore and was caught red-handed accepting the first installment of Rs. 1.25 crore.

Ashok Nayak’s alleged modus operandi was similar to that of his peers.

He knows that in his capacity as an IRS officer, he wields enormous power and influence and that the same can be used as a tool to extort bribes from hapless citizens.

In the past, Ashok Nayak has served in several prime posts in the Directorate of Revenue Intelligence, the Enforcement Directorate (ED) and the Air Intelligence Unit of the Customs.

In his present avatar as Assistant Commissioner of service tax, Ashok Nayak allegedly approached the owner of a Navi Mumbai hotel and threatened to arrest him for alleged violations if he did not pay a bribe of Rs. 15 crore.

Fortunately, the hotelier was not cowed down. Instead, he rushed to the CBI and lodged a complaint against the IRS officer.

The CBI sleuths laid an elaborate trap. When Ashok Nayak walked in to collect the first installment of Rs. 1.25 crore, the sleuths pounced on him and nabbed him red-handed.

During course of investigation the accused informed CBI that he was to deliver that amount to another person. The CBI set up another trap and arrested one Dhananjay Shetty for accepting the tainted money,” the CBI sleuths said.

The CBI also searched Nayak’s residence, where they claimed to have found some incriminating documents.

Deputy Commissioner sentenced to one year Rigorous Imprisonment with fine of Rs. 60 lakh

The good news is that the arrests of high level revenue officials is also culminating in convictions.

According to a press release issued by the CBI, the Special Judge-III, CBI Cases, Ernakulam (Kerala), has sentenced K.S. Chandrasekhar, then Deputy Commissioner of Customs, Air Cargo Complex, to undergo one year Rigorous Imprisonment with fine of Rs. 60 lakh.

Two private persons have been sentenced to undergo two years Rigorous Imprisonment with fine of Rs. 30 lakh each.

The investigation revealed that K.S. Chandrasekhar while working as Deputy Commissioner of Customs entered into a criminal conspiracy with the private persons for clearing of goods without imposing applicable Customs Duty. In furtherance of said conspiracy, the Deputy Commissioner habitually obtained illegal gratification on eight occasions for a total amount of Rs. 3,79,350 as a reward for the favours shown to said firm.

Fear of God in corrupt officials

Hopefully, the concerted action of the CBI in pursuing the alleged corrupt IRS officers will put the fear of God in their minds and they will be put on the path of reform.

8 comments on “IRS Officer Demands Bribe Of Rs. 15 Crore – Busted!
  1. Sukumar Mondal says:

    Whistle Blowers should be encouraged to report about corrupt officers. It is hard to believe that higher administrative head have no idea about corrupt officers,while it is his duty to check corrupt practices.Either they get share of the booty or inefficient. When one officer or staff is caught his immediate upper administrative officers should also be booked then only such menace can be controlled. Now pay scale if pretty fair enough still they are greedy.
    Transfer policy should be made fair and transparent – compulsory rotation should be made allowing all staff and officers to be posted in each of the section barring selected group being posted in sensitive posts again and again

  2. kc aggarwal says:

    The government has failed to bring about systemic improvements. There is need to change administrative practice and it can make a world of difference. My repeated writings on the subject seem to have caught no attention of government wherein I have suggested concrete measures under the existing law. But it would require determination to bring about a change if such corruption is to be handled.

  3. Rajgopal says:

    Even our statute books are written in such a mode that it will help like this corrupt Babus n against common man. For e.g. many of the assessment provisions in the statute books say – “In the opinion of…” “Satisfaction to the Assessing officer”. Poor common man pays to satisfy or to bring the opinion of in proper perspective.
    It is the high time to change the laws in statute book.Govt. if desires to stop this kind of corruption first amend this kind of provisions in the statute book.

  4. KXip says:

    Corruption is rampant in income tax depsrtment,. Without bribe not a single file moves. Even for completing limited scrutiny assessment hefty bribes are demanded. And ouyr beloved government thinks only ordinary citizens are corrupt and their officers are very good and honest.

  5. manish parekh says:

    Only once IRS & IAS Acts are redrafted, there is some hope. You cannot expect things to change with same set of Rules which were designed for British Officers to RULE India. What is required is set of Rules to ADMINISTER ( & Not to Rule). Imagine 5% British Officers ruling the whole of India, suppressing people & filling the British coffers – now those 5 % being replaced by Indian IRS & IAS officers treating their fellow countrymen in same manner extorting money & filling PERSONAL coffers…….

  6. CA Deepak Soni says:

    I do not think anything is going to happen to the corrupt officers.They have amassed crores of rupees which will be utilized in hiring the advocates and also bribing the CBI officers to make the case weak on the papers and all the windows for his acquittal will be created.Corruption is a very big scandal in India and nobody is afraid of it.The politicians ,bureaucrat friends ,CBI officers ,advocates and may be even the judges would come to the rescue of the corrupt but wealthy officer.The arrest of the officer is big public drama and will be put in dust bin after couple of the days. take a look in the past and one will find that the cases have been going on and on and the accused officers are on the duty and busy in collecting the bribe.The most third class and unpractical laws have given absolute powers to the officers and absolute powershave given rise to the corruption .Everyone knows the root of the corruption but no one is prepared to correct it because everyone in power is a beneficiary in the loot.

  7. Varaprasad Daitha says:

    Inaction also amounts to corruption. How? The alleged officers are still bribing inquiry officers and disciplinary authorities not to conclude the actions initiated so that the reinstated officers do not get finalization of the proceedings but will continue to receive all benefits.

  8. Guru says:

    These are of no use and constitute only a tip of the iceberg. When will the wise men in the Finance Ministry realise that passing draconion laws which make every citizen a criminal for the smallest of offenses and then giving wide ranging powers to the lower authorities to enforce even imprisonment will only aggravate matters and increase rent seeking…or is this their objective?Wither the promise of minimum givt and maximum governance?Or was it only an election promise like Garibi Hatao

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