Man who disclosed Rs 14,000cr black money goes missing

December 3, 2016

Ahmedabad, Dec 3: A businessman from Gujarat has disappeared after disclosing unaccounted earnings of Rs 13,860 crore under the Centre's Income Declaration Scheme (IDS).

Black
Mahesh Shah, 67 , lived in a 4-BHK apartment in an old building in Ahmedabad, and was known to take an autorickshaw to work. The billionaire also owed money to neighbours.

Shah's cash disclosures account for more than 20% of the total Rs 65,000 crore declared under IDS in India. However, in his income tax returns for the past 2-3 years, Shah had shown his annual income as Rs 2 lakh to Rs 3 lakh.

Income tax department sleuths carried out searches at Shah's residence and his chartered account Tehmul Sethna's office and residence from November 29 to December 1. "The last time I talked to Shah was on November 29 in the presence of I-T officials. Ever since, he is inaccessible," Sethna, a partner in the 90-year-old CA firm Appaji Amin & Co, said on Friday.

Shah, a big-ticket land dealer with business interests in Gujarat, Mumbai and Pune, had declared his income on September 30 -the last date for disclosures under IDS. The first instalment of Rs 1,560 crore, 25% of the 45% tax imposed on his declared income, was to be paid on November 30. However, Shah's declaration form was cancelled by the I-T department on November 28.

Sethna claimed that Shah's declaration was cancelled after I-T officials, following a search, felt he would not be able to pay the amount. "I-T department suspects the possibility of money laundering through income disclosed by Shah," he said. The I-T department, however, said there was no co-relation between Shah's IDS declaration and the search operations.

"It was sheer coincidence that premises of Shah and his business associates were among 67 places searched following market intelligence about illegal currency exchange in Ahmedabad after demonetisation. We had no inkling of Shah's disclosure under IDS, which is being handled by the assessment branch and is confidential. We have seized Rs 40 lakh in cash and jewellery worth Rs 30 lakh from Shah's business associates," said a senior I-T officer.

Shah and Sethna came into contact in 2013 when the former approached the CA for tax advice in a land deal. "The land deal never materialised but Shah kept in touch. Shah was not a regular client and I have never filed Shah's income-tax returns," Sethna said. He conceded that he never doubted Shah's credentials though the latter possessed huge amounts of cash. He said Shah had contacts with highly influential people, including politicians, and put up only at five-star hotels in Mumbai.

Shah's son Monitesh, 32, said, "He (Shah) is in Mumbai but I have no idea about his whereabouts."

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News Network
May 12,2024

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Mangaluru: Dakshina Kannada Zilla Panchayat High School in Harekala, popularly known as Padma Shri awardee Harekala Hajabba’s school, is gearing up to inaugurate its first batch of Pre-University (PU) courses starting June 1. 

The government issued an order to elevate the school established by Padma Shri awardee Harekala Hajabba to the status of a PU College a few months ago.

The School Education and Literacy Department (PU Education) has formally sanctioned the upgrade for the school.

CD Jayanna, the deputy director of PU Education, confirmed that all necessary approvals have been obtained from the government to initiate PU classes.

“Hajabba’s school will kick off PU classes for its inaugural batch on June 1. We have appointed a senior lecturer as the interim principal for the PU college. Presently, the school possesses the essential temporary infrastructure to begin the I PU batch. Plans are underway to enhance the infrastructure for the PU college in the future. Currently, the school boasts adequate classrooms and facilities to commence PU classes,” stated Jayanna.

Harekala Hajabba, an orange vendor, personally erected the school in his native village, New Padpu in Harekala, situated approximately 35 km from Mangaluru. For several years, he has tirelessly petitioned the government for the establishment of a PU college.

Expressing his gratitude, Hajabba mentioned that 19 students who recently completed their SSLC examinations are poised to enroll in the new PU college. He added, “We anticipate enrollment from neighboring villages as well. Both the interim principal and the PU education department have been diligently orchestrating the necessary arrangements to initiate classes.” 

He extended his appreciation to the government, local representatives, and officials for their unwavering support.

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News Network
May 7,2024

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Udupi: Udupi became the second city on the Karnataka coast after Mangaluru to launch water rationing, a senior official said on Tuesday.

Commissioner of the Udupi City Municipal Corporation Rayappa said that the rationing system will come into force from Wednesday and will continue till the water in the reservoir reaches comfortable levels.

The dam built across the Swarna river at a place called Baje, which is the only source of water for Udupi city, recorded 3.25 meters of water as against the top level of 6.30 meters.

The decision of water rationing will be reviewed periodically until the reservoir regains its fullest levels, the official said.

The Mangaluru City Corporation resorted to water rationing on Saturday following declining water levels in the reservoir built across the Nethravati river at Thumbe. 

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News Network
May 14,2024

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Mangaluru, May 14: The Met department has sounded a yellow alert in 13 districts of Karnataka including the three coastal districts of Udupi, Dakshina Kannada and Uttara Kannada for next four days. 

The other districts are Belagavi, Dharwad, Haveri, Chikkamagalur, Chitradurga, Hassan, Kodagu, Mandya, Ramanagara, Shivamogga. These districts are expected to received 6-11 cm of rain, the department said.

On Monday Dakshina Kannada and Udupi experienced a monsoon-like atmosphere. Rain, accompanied by thunder and lightning, began in most parts on Sunday evening. In Udupi, rain showered in the early hours of Monday. While Kundapur and Udupi received moderate rains, Karkala experienced a heavy downpour.

The showers lowered the daytime temperature in both districts. Light rain fell in Mangaluru and its outskirts early Monday morning. Mangaluru city recorded a maximum temperature of 33.4°C and a minimum of 23.2°C on Monday. This is expected to decrease by two to four degrees in the next four days, according to the weather department. 

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