Darshan Singh Parmar Vs Union of India (Bombay High Court)
Bombay High Court has directed the Union of India and the Maharashtra State Sales Tax Department to pay a reward of ₹19,44,802 to Darshan Singh Parmar, a citizen who provided crucial information leading to significant tax recoveries. The court’s order, issued after a protracted legal battle spanning over a decade, underscores the importance of fair implementation of government reward schemes for informers.
Parmar, aged 64 at the time of filing the petition in 2013, sought a reward for information he began providing to the Sales Tax Department in 1992 concerning tax evasion. His efforts notably exposed a scheme involving Public Sector Oil Companies and Fisherman Co-operative Societies in 1996, leading to widespread tax evasion. Despite providing what the court described as “at least prima facie indicated tax evasion or even tax fraud,” initial action from the authorities was lacking.
Parmar’s persistence led him to file Public Interest Litigation (PIL) No. 139 of 2006, which was disposed of in 2007 with the court granting him liberty to pursue his claim for rewards. This was based on the understanding that tax evaders were apprehended and taxes recovered due to his complaints.
However, Parmar faced continuous stonewalling from the Respondents, who provided vague and non-specific replies regarding the recoveries made and the status of his reward claim. He was often given the impression that his claim would be considered only after various appeals related to the tax recoveries were disposed of.
