Friday, March 30, 2012

Vodafone, E&Y and Justice Kapadia .. conflict of interest ..?

Did the Supreme Court Chief Justice Kapadia led 3 judge bench exercise an error in judgement in deciding on exempting Vodafone from a Rs 11,000 crore ( $ 2.2 billion) tax demand by the Tax Dept by taking into cognisance a Due Diligence Report filed by Ernst  & Young (UK) report, when the Chief Justice's son was employed with E&Y (India) ?

Did Vodafone influence the E&Y (UK) report in the first instance ? The CJ taking into account this report while considering exemptions for Vodafone gives enough cause of reason to doubt the settlement of such a very big tax exemption issue. Vodafone claimed the transaction to be a structured FDI into the country, but in reality not a single penny had entered the country as FDI. Smells fishy !!

Quote : The government listed 121 grounds, each pointing to an error in judgment, to seek review of the January 20 order and said it was surprised by the apex court's decision to give relief to Vodafone on the ground that its offshore transaction was a structured foreign direct investment into the country when in reality not a single penny came as investment into India. : Unquote 

Should the CJ have recused himself from hearing this case given the conflict of interest in his son being employed by E&Y India ?

Will the common man get to know the truth behind this ?


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