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Wednesday, 15 December, 1999, 14:03 GMT
Taxman's threat for Bihar politician

Laloo Yadav: Could have his assets seized Laloo Yadav could have his assets seized


By Daniel Lak in Delhi

Income tax officials in India have threatened to prosecute one of the country's most controversial politicians for alleged tax evasion, following the lavish wedding of his daughter several days ago.

Sources in the income tax department told the BBC that they could seize all of the assets owned by the politician, Laloo Prasad Yadav and his wife Rabri Devi.

Ms Devi became chief minister of the state of Bihar two-and-a-half years ago, when her husband resigned because of corruption charges.


Rabri Devi took over after her husband resigned Rabri Devi took over after her husband resigned
The wedding of Laloo Prasad Yadav's daughter was covered almost as a state occasion by the Indian media, but there were constant references to the cost, estimated at around $500,000, and the fact that Mr Yadav has been charged with involvement in a huge corruption scandal in Bihar.

Now the income tax department has turned gossip into reality, demanding payment of about $100,000 and threatening prosecution and seizure of assets.

The father-in-law of the bride was also served notice of potential tax evasion.

Spending trap

Weddings in India are often large, expensive affairs.

Families compete to spend large sums of money on the most elaborate arrangements.

The income tax department has been watching wedding expenditures for some time now and comparing the estimated cost of the ceremony with statements of assets and income sent by families to the government.

Fodder scam

A source in the income tax department in Bihar said officials were also trying to trace some of the more than $2bn believed to have disappeared from government coffers in the state, in what has become known here as the fodder scam - fake bills paid by the agriculture ministry for food for non-existent cattle.

Mr Yadav and a number of other politicians and officials have all been charged in connection with the affair.

He is seen as one of the cleverest politicians in India, and has managed to avoid conviction and jail terms so far, but the latest move by the income tax department could be one of the toughest challenges yet to Laloo Prasad Yadav.

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See also:
11 Dec 99 |  South Asia
Lavish wedding for politician's daughter
07 Dec 99 |  South Asia
Bihar gears up for Laloo's daughter
09 Mar 99 |  South Asia
The Rajah of Bihar
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25 Feb 99 |  South Asia
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22 Sep 98 |  South Asia
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