The cost of unknown negligence

Do you think twice before submitting your identity proof documents to your employers? Or carefully read all documents your employer makes you sign? If not, Shivnath Patel's story is sure to send shivers down your spine.

He is mere a plumber but has got income tax notice to pay. How did this happen? Ten years ago, Patel, a plumber, worked with Radhe Greenwoods Pvt Ltd, Ahmedabad.  He would work here as a peon-cum-sweeper and was paid Rupees 1500 by his employer, Ashish Patel.

In December 2010 Patel received a call from IT department. Official asked him about the financial transactions he made as director of a reality firm. In 2002-03 he had received an IT notice to explain Rupees six crore transaction from his bank account to purchase shares of Alps BPO Services. At that time Patel thought that the notices were sent to him by mistake and returned them twice.

Today Shivabhai Patel is working as a daily wager and earning Rs.5000 per month. Patel was shocked when he came to know that he had purchased shares worth Rupees six crore as a director of a firm where he was serving as a peon and would have to pay taxes on the same.

“I have studied only till class XII and with a friend's help I replied that I was not aware of any transaction and had never purchased any shares. But the department didn't believe I was working as a sweeper in the company. I contemplated suicide a couple of times when people told me the officials would seize my flat, cycle and plumbing tools to collect tax on the Rupees 6.95 crore transaction. I told officials I would jump from their office building to prove I was right," said Patel.

It has come to light that his employer, Ashish Patel, had opened a bank account in name of Shiva Patel to deposit his salary but after getting signs on some blank paper, Ashish Patel transected crores of rupees through this account.

As per IT officials, company records showed him as director and they had also sent notices to another director. But he replied stating he had resigned much before the transaction took place.

“The boss took my photo identity documents to open a salary account. They later made me sign blank cheques claiming it was necessary if I wanted to work with the company. I came to know about the clandestine operations when Comos Co-op Bank sent me a letter last year saying they would close my account as the minimum balance was not maintained,” Shivanath Patel says.