A massive tax evasion racket has been uncovered at the Subansiri Lower Hydro Electric Project (SLHEP), a flagship dam construction site of the National Hydroelectric Power Corporation (NHPC) located at Gerukamukh on the Assam-Arunachal Pradesh border. The Assam State Goods and Services Tax (GST) Department revealed irregularities amounting to over Rs 8 crore involving a contractor company responsible for constructing the dam’s concrete gravity structure.
Officials said the firm allegedly manipulated purchase records, underreported taxable transactions, and evaded state taxes while executing the mega infrastructure project. The development has raised serious concerns about tax compliance and monitoring in large-scale government-backed projects.
Investigation Into Contractor’s Dealings
The GST team launched a detailed probe into the company’s accounts following suspicions of discrepancies in invoices and payments. According to investigators, the company used fake invoices and underreported its taxable turnover over several months.
The inspection team carried out raids at the company’s offices and the construction site, seizing crucial documents and digital records. Initial findings indicate systematic tax fraud running into several crores, which officials believe could grow as the investigation deepens.
Subansiri Project Under Spotlight
The Subansiri Lower Hydro Electric Project is India’s largest hydroelectric undertaking, with a proposed installed capacity of 2,000 MW. The dam, under construction since 2005, has faced multiple delays due to environmental concerns, protests by local groups, and financial irregularities.
This latest revelation of tax evasion has intensified scrutiny of the project’s contractors. Analysts say the case highlights the need for stronger oversight of infrastructure projects that involve massive public funds and state-level coordination.
Assam Government Vows Stern Action
The Assam government has vowed strict action against companies involved in tax evasion, especially in high-value projects. Senior officials emphasized that the GST Department’s crackdown is part of a larger strategy to curb financial malpractice and safeguard state revenue.
The government is also expected to introduce stricter monitoring mechanisms for contractors working on projects of national importance. Officials said penalties and legal action would be pursued once the full scale of the fraud is confirmed.
Revenue Losses Raise Concerns
Experts estimate that large-scale tax evasion has cost Assam significant revenue, impacting state development initiatives. The Subansiri case is seen as a wake-up call for authorities to tighten auditing and compliance measures.
Economists have called for a transparent system that ensures tax accountability for companies engaged in public projects. Activists have also urged the government to make investigation findings public to maintain trust.
Hydropower Projects and Financial Oversight
The Subansiri Lower project is a crucial part of India’s plan to harness hydropower potential in the Northeast. However, controversies over safety, environmental risks, and now financial irregularities have plagued its progress.
Observers say such instances damage public confidence in infrastructure development. Moreover, they believe transparent governance and stricter financial auditing could restore credibility.
Expanding the Probe
The GST department has indicated that more contractors and subcontractors linked to the Subansiri project may come under scrutiny. Authorities are analyzing records of supply chains, vendor contracts, and billing practices to identify other possible tax violations.
Insiders said the investigation could uncover a broader network of financial irregularities, prompting calls for a comprehensive audit of all large-scale construction projects in the region.
Public Reaction and Accountability
The revelations have triggered public outrage, particularly in Assam, where residents have long demanded transparency in large infrastructure initiatives. Many fear that corruption and tax fraud could delay the project further, affecting energy generation plans for the Northeast.
Citizen groups and activists are demanding strong legal action against those involved, along with assurances that future projects will be closely monitored.
Way Forward for Assam and Arunachal Border Projects
With the Subansiri project at the center of both environmental and financial debates, experts believe this case could reshape how government contracts are awarded and supervised. Policymakers are being urged to establish independent auditing teams for projects funded by both central and state governments.
The crackdown has sent a clear message that tax evasion in critical sectors will not be tolerated. Stakeholders now await the outcome of the investigation, which is expected to set a precedent for transparency in India’s energy infrastructure sector.
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