Stay all operations of GSTN, Subramanian Swamy writes to PM Modi

BJP MP Subramanian Swamy has once again written to Prime Minister Narendra Modi objecting to the Goods and Service Tax Network (GSTN) company.  He urged for PM Modi to direct a ‘complete stay’ of all operations of the presently constituted GSTN.

“The GSTN which is a data processing and tax revenue collecting private limited company which was never security cleared by the Home Ministry (for) which clearance is mandatory required,” Swamy wrote in the letter.  

He also accused certain Finance Ministry officials and as the Chairman of the GSTN of telling the press that the GSTN as presently constituted will continue without hindrance.

Swamy said that the GSTN is dominated by private institutions, who hold majority shares and that these private institutions are controlled by foreign shareholders.

He further added, “ ICICI and HDFC share holding are near about 65% to 80% owned by foreigners. In effect GSTN is foreign controlled and hence needs to be restructured.”

He also said that the CAG had not been allowed for audit of the financial transactions of the GSTN. This he said will run into “lakhs of crores” rupees.  

He argued that the Finance Ministry and the department of electronics are fully capable of handling GST data.  

Swamy said that the CEO of GSTN gets an annual salary of over Rs 1 crore. “Never in the history of any government has an official got this level of remuneration and considering too that this for performing routine work of data processing,” he added.

He also claimed that the computer programming of GSTN has been outsourced to Infosys at a huge payment of Rs 600 crore, of which Rs 400 crore has already been paid to them. “Incidentally, the then Minister of State (MoS) for Finance Jayant Sinha’s wife was made a Director of Infosys just after the contract was signed,” he added.    

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