Even as the Chief Minister Capt Amarinder Singh was playing it cautious, Punjab cabinet on Wednesday took cognisance of the broader picture of “cable mafia” projected by his Cabinet colleague Navjot Singh Sidhu.
It set 10-day deadline for Punjab Advocate-General to study the issue before expressing his opinions on legalities involved.
The issue was discussed at length in the Cabinet meeting even though it was not part of the agenda.
Sources informed that the State Advocate-General office and the concerned departments have been asked to submit report on alleged irregularities committed by a leading private cable network company within 10 days to the Government.
local Government Minister Navjot Singh Sidhu had alleged the Fastway Cables, having links with the Badal family, of causing over Rs 600 crore loss to the State exchequer by way of evading various taxes and fees.
Capt Amarinder has all along been dragging his feet in ordering inquiry into the alleged irregularities committed by the Fastway, while Sidhu has been taking a tough stand to act against the company.
It has been learnt that after the entire Cabinet pressed for inquiring into the working of the cable company, Capt Amarinder decided to direct the concerned departments to look into it.
laying bare the working of the “cable mafia” in the state in past five years of Akali-BJP rule during the recently-concluded assembly session, Sidhu alleged that the Fastway Cables - that started with a capital of Rs 25 lakh and now has Rs 30 crore profit — “monopolised” cable business in the state causing Rs 500 crore loss to the state revenue by evading taxes, and not making payments to the local governments.
He declared that as many as 8,000 cable operators are functioning in the state, out of which, 6,500 are directly under the Fastway while remaining 1,500 are indirectly under it.
Sidhu pointed that in the accounts of Centre’s service tax department, 1500 local cable operators are functional in Punjab, “and remaining are operating illegally”. Service tax department has issued service tax notices worth Rs 250 crore, out of which, only Rs 23 crore have been deposited.
He accused the company of robbing Rs 184 crore that would have gone to the state exchequer including Rs 85 crore tax from interest and fines.