The Nirav Modi case is becoming a sticky wicket for many investigators. Now, top income tax officials including Sushil Chandra, Chairman of the Central Board of Direct Taxes (CBDT), have come under the CBI lens for the alleged misreporting and sharing of investigation details with extortionists.

A source in the central government has said at least eight Income Tax officials in Delhi and Mumbai are under the CBI lens. "A discreet inquiry is on against senior I-T officials, including CBDT Chairperson, for their inappropriate role in the Nirav Modi case."

On the direction of Prime Minister's Office (PMO), it would be the first time ever in the history of CBDT that a process of "vigilance clearance of all CBDT members" is taking place. "The PMO is supervising the entire vigilance process to shortlist the right officer for the CBDT chairperson's post," the source added.

Chandra was supposed to get another extension in the CBDT, but now "his extension file is pending in the PMO for the last two months because of these findings. He may or may not get this extension." Chandra will retire on May 31.

Sources say senior I-T officials, from the Delhi headquarters to Mumbai Scindia House, were running an "extortion racket". In the Nirav Modi case, the I-T officials investigated all rich individuals, including industrialists, businessmen and their family members who had purchased diamonds from the Nirav Modi showrooms in lakhs and crores.

"But instead of filing the authentic details in their status report, they (I-T officials) misreported and undervalued the purchase amount. For example, if a person purchased a single diamond for Rs 1 crore, the amount shown in the record was Rs 25 lakh," the source said. Besides, the officers also shared confidential details with "extortionists such as journalist Upendra Rai" and others to get money from the people whom they had investigated.

It is also alleged that these I-T officials never passed on these details to the CBI or the ED; both the agencies are investigating Nirav Modi and Mehul Choksi.

"A nexus is working within the Income Tax department for a wrongful gain," the source said. As of now, starting from the chairperson's office to Director General of Income Tax (DGIT) in Mumbai and various senior officers of additional commissioner, joint commissioner and joint director level are under the scanner. Following, the Upendra Rai case, the CBI team had visited Scindia House in Mumbai (office of investigation wing) to examine details of I-T officials under suspicion.

"The CBI team took away the CCTV footages of specific days and timings, personal details of officials concerned, and also checked the entry books (register) of all guests who came inside the building," a source said, requesting anonymity. #casansaar (Source - Business Today)