A division bench of the Bombay High Court comprising Justice Dr B P Saraf and Justice D G Deshpande, on Monday recorded the submissions of the income tax department, made by its counsel, the additional solicitor general, Dr D Y Chandrachud. The deparment informed the court that Bhat's allegations against Singh are being looked into and if anything if found against him, appropriate action will be taken.

The department also submitted that all the actions connected with the raid were taken in accordance with the law and that if the petitioner was aggrieved he could take the available remedy under theIncome Tax Act. The department also submitted an affidavit on the facts of the case, and the alleged `conduct' of the petitioner.

Bhat's counsel, V H Patil, did not press the petition after the submissions of the department. Singh was the officer who conducted the raid on Bhat's office in September 1998, on information that Bhat was running money multiplier schemes and was paying unnatural rates of interest. The I-T action also led to the arrest of Bhat by the EOW of the Mumbai police.

While Dr Chandrachud appeared for the chief commissioner of Income Tax and the director of Investigation, Singh was represented by C M Korde. The petitioner was represented by V H Patil, instructed by Ashok Kotangle.