Hyderabad/Mumbai: In a major crackdown on corruption within the Income Tax Department, the Central Bureau of Investigation (CBI) has arrested Jeevan Lal Lavidiya, a 2004-batch Indian Revenue Service (IRS) officer and Commissioner of Income Tax (Exemptions), Hyderabad. The arrest comes as part of a sweeping investigation into a complex bribery network involving benami property deals, hawala transactions, and manipulation of tax appeal outcomes.
Lavidiya was taken into custody along with four others, including Viral Kantilal Mehta, Deputy General Manager (Taxation) at Shapoorji Pallonji Group; Sairam Palisetty of Srikakulam; Natta Veera Naga Sri Ram Gopal of Visakhapatnam; and Sajida Majhar Hussain Shah of Mumbai. The arrests were made following revelations in a CBI FIR that highlights the systemic collection of bribes through intermediaries for favourable tax appeal decisions.
At the heart of the scandal is a high-value flat worth ₹2.5 crore in Mumbai, allegedly received as a bribe by Lavidiya and registered under a benami name, Dandela Venkateswarlu from Khammam. The flat, sourced from NDW Development Corporation LLP through Aviation Hotels, was allegedly tied to a pending appeal the officer was overseeing.
The FIR details how Lavidiya, while holding additional charge of Appeals Units 7 and 8 under the Principal Chief Commissioner of Income Tax, Hyderabad, collaborated with multiple intermediaries to solicit bribes from firms with pending tax disputes. Key middlemen identified in the network include chartered accountant Rayapureddy Narendra of Hyderabad and others from across Andhra Pradesh and Maharashtra.
One of the most prominent cases involves the Shapoorji Pallonji Group, which allegedly approved a bribe of ₹1.2 crore to secure a favourable outcome in a pending tax appeal. Of this, ₹15 lakh had already been delivered through intermediaries, with the remaining ₹70 lakh in transit at the time of Lavidiya’s arrest. The CBI alleges that Lavidiya instructed his associates to expedite a favourable ruling once the bribe was fully received.
Additional bribes of ₹20 lakh and ₹15 lakh were allegedly paid by Ventura Securities of Thane and Mumbai-based businessman Nitin Anandrao Shitole, respectively. These transactions were reportedly funneled through hawala routes and accounts linked to Landa Varahalau of Visakhapatnam. Ahmedabad-based Hemantkumar Rajendrakumar Shah is also named in the FIR for a ₹15 lakh bribe.
The case has been registered under multiple sections of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita. Fifteen individuals and corporate entities across Mumbai, Hyderabad, Thane, Visakhapatnam, and Ahmedabad are named in the FIR. The investigation is being spearheaded by Inspector Shakti Kumar of the CBI’s Anti-Corruption Branch.
CBI officials say the arrests mark a significant step in dismantling a deeply entrenched bribery syndicate within the tax administration system. More arrests and searches are expected as the investigation progresses.
