Kerala Chief Minister Pinarayi Vijayan on Tuesday opposed any sort of probe by the Enforcement Directorate (ED) into the alleged irregularities in the state's cooperative financial institutions, saying the central agency need not meddle with the cooperative sector. Vijayan said this in response to a query on the demand by his former Cabinet colleague and CPI(M)-backed MLA KT Jaleel for an ED probe into the alleged money laundering in a cooperative bank controlled by the Indian Union Muslim League (IUML) in Malappuram district.
He also pulled up Jaleel for taking up the matter with the ED. "There is no need for ED to meddle in the cooperative sector of Kerala," Vijayan told a press conference. The Chief Minister said the state's Cooperative Department was equipped to investigate such matters and it has already initiated a probe into the alleged irregularities in the AR Nagar Service Cooperative Bank.
His statement came a day after Jaleel held a press conference in Malappuram accusing senior Muslim League leader PK Kunhalikutty of carrying out fraudulent transactions to the tune of Rs 1,021 crore through AR Nagar Service Cooperative Bank in Malappuram district. In a sarcastic remark, Vijayan said Jaleel's trust with ED might have gone up since he himself was questioned by the central agency as part of its investigation into the gold smuggling case.
He said the state Cooperative Department could not move forward in the case due to a court stay. The Chief Minister's statement has come as a setback for Jaleel who has waged a battle against Kunhalikutty, his political rival in Malappuram district. Recently, Jaleel gave a statement to ED against the Muslim League leader in connection with the alleged financial irregularities committed by the Muslim League leader in the name of financial activities of the Muslim League mouthpiece in the state.
Meanwhile, in the press meet, Pinarayi also stated that to prevent tax evasion in gold jewellery sales, strict measures like increased inspection of gold shops would be taken.The CM’s statements came as an attempt to allay concerns of gold merchants that it was a "war" against them. At a press meet held in the evening, he said the decision was taken as the tax revenue being received from the jewellery sector, which was a major contributor of tax revenue, had reduced.
He said the state government does not intend to get into any argument with the gold merchants nor does it intend to trouble anyone. Rather its intention is to ensure proper and timely payment of tax from people in this sector as there are those who are evading tax.
In a release issued on Tuesday morning, it was said that the Chief Minister had taken the decision at a high-level meeting where it was also decided to strengthen the sales tax intelligence in the state.
The Chief Minister also directed that strict inspections should be carried out in areas where tax evasion was likely and where violations are found, action, including cancellation of GST registration of such persons, should be taken against them, the release said.
Adequate incentives should be given to officials who do more tax collection, it was decided in the meeting during which Vijayan also inquired about the possibility of making CCTV footage of large gold shops available at the GST office and police station, it said.
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