New Delhi: A recent Supreme Court case regarding whistleblowers’ right to be appropriately rewarded has put the spotlight on India’s leading video news agency ANI in a matter of tax evasion. The Supreme Court recently directed the Union Ministry of Finance to reconsider the amount of reward to be given to a person who informed the agencies about alleged tax evasion by ANI.
The whistleblower had moved the top court alleging that he was not paid his legitimate reward by the finance ministry despite the fact that his information about ANI turned out to be correct and which forced the news agency to clear its tax dues. The appellant complained that he had informed the tax sleuths that ANI had not paid its service tax dues of around Rs 2.59 crores.
His information was used to send a non-compliance notice to the ANI, following which the news agency cleared its pending taxes. However, the appellant contended that he was paid only Rs 5.50 lakhs as a reward for his information, despite the fact that he was entitled to get Rs 51.80 lakhs according to clause 4.1 of the “Reward to Informers” policy issued by the revenue department of the Union finance ministry.
Clause 4.1 of the policy states that whistleblowers are entitled to get up to 20% of the amount of tax evaded and fines and penalties imposed on the defaulters. The appellant had moved the Bombay high court in 2015 but received an unfavourable order from the court. He moved the Supreme Court later, which has now said that the reward committee did not apply its mind while granting the award. LiveLaw reported that the apex court also directed the finance ministry to “take a fresh decision” on how much the informant has to be paid as a reward for the leads against ANI within six months.
The court cited that there were no reasons given to the appellant by the authorities for restricting his reward money to Rs 5.50 lakhs instead of 20% as stated in the policy. It also said that the Additional Solicitor General in 2018 had raised the reward money for the appellant to Rs 9.45 lakhs without stating any reason – a point which the court believed is reflective of the non-application of mind and arbitrary nature of the way the reward money was allocated.
As social media users highlighted ANI’s tax evasion since the news broke, the news agency issued a statement.
“ANI Media Pvt. Ltd. (‘ANI’) has been a multimedia news agency for over five decades. In 2010, ANI had received a demand from the appropriate authority for payment of deficient service tax. This demand was voluntarily and duly complied without contest by ANI forthwith. This was duly accepted by the competent authorities and the matter stood closed. ANI is in full compliance with all applicable laws and there is no outstanding tax demand against it as on date. There has been an attempt to mischaracterize an order passed by the Supreme Court in unrelated proceedings where ANI is not even arrayed as a party. Any insinuation or suggestion of any wrongdoing is mischievous and defamatory,” it said.