After nearly three decades of relentless struggle, a 76-year-old resident of Chembur, Darshan Singh Parmar, has finally received justice for his role in exposing a massive tax evasion racket involving public sector oil company officers and fishermen cooperatives. The Bombay High Court has ordered the Maharashtra government to pay him Rs 19.44 lakh within six weeks, reprimanding authorities for the inordinate delay and bureaucratic apathy.
Parmar blew the whistle on the racket back in August 1996, providing the Maharashtra sales tax department with information that allegedly led to tax recoveries of Rs 361 crore. Despite a government scheme that promises monetary rewards to informers, Parmar was never compensated. Instead, he spent nearly three decades chasing departments for his due.
Court Criticizes State's Delay and Bureaucratic Apathy
On Tuesday, a division bench of Justices MS Sonak and Jitendra Jain strongly criticized the state government for its failure to honor its own reward scheme. The judges expressed concern over the repeated delays and lack of cooperation from senior tax officials, who failed to furnish complete details to the court.
"If the government has formulated a reward scheme, it must be implemented fairly and transparently," the court stated. "Informers who take risks and invest time must not be made to run from pillar to post to secure what may be due."
Background: Whistleblower's Long Legal Battle
Parmar initially filed a Public Interest Litigation (PIL) in 2006 when no action was taken against those he accused. Following the PIL, the Central Bureau of Investigation (CBI) took over the probe, arrested several individuals, and initiated prosecutions.
Despite evidence of tax recoveries resulting from his tip-off, Parmar was told he would be rewarded only after the recoveries were finalized through appeals and legal proceedings. Frustrated, he returned to the High Court in 2013, demanding his rightful compensation.
Sales Tax Department's Stand Rejected
The tax department argued that only Rs 55.98 crore was officially demanded and that the final recovery was still pending. They insisted that rewards are only disbursed after permanent realization of dues. The court, however, rejected these justifications and emphasized that even the Rs 19.44 lakh deemed payable by tax officials earlier was unjustly withheld.
"There is no basis for the respondents to now retract and refuse payment of even this amount, which has been determined by them," said the bench.
The court has now directed the state sales tax commissioner and the finance secretary to reassess the total reward amount owed to Parmar and make any additional payments within two months of final determination, which must be completed within six months.
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