HC judge recuses from hearing tax evasion case against Punjab CM, son; accepts I-T Dept’s plea for direction to trial court to not pass final order

Read Order: DEPUTY DIRECTOR OF INCOME TAX v. RANINDER SINGH 

LE Correspondent

Chandigarh, July 23, 2021: The Punjab and Haryana High Court on Thursday requested a Ludhiana trial court to not to pass a final order in an income tax evasion case against Punjab chief minister Amarinder Singh’s son Raninder Singh.

The order came on the plea of I-T department’s counsel that if the matter is not taken up the same day and the trial court proceeds to pass the final order, the present petition would become infructuous.

The I-T department had moved the high court in 2019 against the November 2018 order of the court of additional sessions judge, Ludhiana, quashing the summoning order passed against Amarinder Singh and his son Raninder Singh in this case. A trial court had earlier issued summons to both of them to appear personally for the hearing.

Meanwhile, Justice HS Sidhu, while recusing from hearing the plea of the income tax department, ordered that the matter be placed before the Chief Justice to list it before some other bench. 

Justice Sidhu also asked the trial court to defer the passing of the final order, pending the listing of this case before a high court bench in view of his recusal.

Both Chief Minister Amarinder Singh and his son are facing allegations of making false statements and wilful omission in providing required information to the I-T department, which had filed a criminal complaint against them before a Ludhiana court in 2016.

As per the department, both were beneficiaries of foreign assets maintained and controlled through various business entities and also of foreign bank accounts maintained with a bank in Geneva.

The I-T department has claimed that the chief minister’s son is a direct beneficiary of assets maintained and controlled through foreign business entities. These include accounts with HSBC Private Bank, Geneva. Raninder is also a trustee of the UK-based Jacaranda Trust. However, Raninder had denied any association with these entities, as per the petition.  

The income tax department has claimed that Raninder was the settler (donor) of the Jacaranda Trust, UK, and the owner of business entities Mulwala Holdings Limited, Limerlock International Limited, Chillingham Holdings Limited and Allworth Venture Holdings Limited. 

The authorities in British Virgin Islands (BVI) informed the department that the business entities were holding substantial financial assets, including bank accounts in HSBC, Geneva, and properties in the UK and Dubai, the high court has been told.

As per the I-T department, the BVI authorities provided the I-T department a copy of the trust deed which showed that the settlement was made on July 22, 2005, in British Virgin Islands between Raninder and HSBC Trust Company (BVI) Limited. Raninder acted as a trustee of the Trust.

“In view of the aforesaid the Trial Court is requested to defer the passing of the final order to a date beyond the date on which this case is listed for hearing,” the High Court said.