Page 16 - Banking Finance May 2023

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worth Rs 10,683 crore have been at- the ED has also secured confiscation of (CCI), cannot impose penalties on cor-
tached in the current financial year proceeds of crime of Rs 15,600 porate entities based on their global
2022-23 (till January 31) by both direct crore.The minister also said that assets turnover. Penalties are currently re-
and indirect tax authorities in various of Rs 15,114 crore have been resti- stricted to the company's sales in the
investigations against tax offenders, tuted to public sector banks. relevant market only, experts said.
data shared by the government in Par-
Out of this, a consortium of banks, led The amendments also make compli-
liament showed.
by SBI, has realised Rs 7,975 crore ance easy by allowing CCI to regulate
Central Board of Direct Taxes (CBDT) through the sale of assets handed over mergers and acquisitions (M&A) based
and Central Board of Indirect Taxes to them by the ED. on the value of transactions with Rs.
and Customs (CBIC) had attached 2,000 crore threshold, if the target
The laws allow for confiscation of prop-
1,657 immovable properties in 2021- entity has substantial business opera-
erty by CBDT and CBIC for recovery of
22 worth Rs 19,832 crore, out of which tions in India. It also proposed that CCI
tax, after following due process.
five immovable properties worth Rs would need to take a view within 30
In recent years, the government has
23.95 crore were disposed of by the days on the likelihood of a combination
also gone after benami property, which
authorities. In 2020-21, a total of 1,304 or M&A causing adverse effect on the
is also being dealt with by CBDT.
properties were attached worth Rs competition.
16,949 crore, while 12 properties
Adani stocks bounce bank
worth Rs 3.11 crore were disposed of Govt plans to borrow Rs.
by the tax authorities. on prepayment of share-
8.88 lakh from market in
"Many cases where properties are at- backed loans
FY24
tached by CBDT and CBIC are chal-
Most Adani stocks rebounded after the
lenged before the Court and unless The Centre plans to borrow Rs 8.88
group said it has completed full prepay-
Court decides the matter, these prop- lakh crore via bonds from the market
ment of margin-linked share backed
erties cannot be disposed of," Minister in the first six months of the fiscal year
financing of $2.15 billion, and all cor-
of State for Finance Pankaj Chaudhary starting on April 1, the finance minis-
responding pledged shares have been
said in a written response to a ques- try said in a release.
released. The group's m-cap rose by
tion in Rajya Sabha.
Rs. 20,205 crore to Rs. 9.09 lakh crore. The Centre's borrowing has more than
doubled from 2019 levels as the
Assets of Rs. 1 lakh crore
Lok Sabha passes Compe- government's social spending on free
seized, Rs. 71 crore dis- food and subsidies rose to record highs
tition Bill
largely due to the Covid pandemic.
posed of by taxmen The Lok Sabha passed amendments to
Out of the Gross Market borrowing of
The Centre's direct and indirect tax the competition law for stricter com-
Rs 15.43 lakh crore projected for FY
wings have seized immovable property pliance, including by empowering the
2023-24 in the Union budget, Rs 8.88
valued at over Rs 1 lakh crore, but dis- antitrust regulator to impose penalties
lakh crore (57.55%) is planned to be
posed of assets to the tune of Rs 71 on global turnovers of erring firms, a
borrowed in 26 weekly tranches of Rs
crore, the government told the Rajya move that could open the doors for
31,000-39,000 crore.
Sabha. harsher punishments on entities like
Big Tech firms.
"Many cases where properties are at- Sahara co-operatives' in-
tached by Central Board of Direct The changes, proposed as part of the
vestors to get money back
Taxes and Central Board of Indirect Competition (Amendment) Bill, 2022
Taxes and Customs are challenged be- that was cleared amid pandemonium in 9 months
fore the court and unless court decides in the House, also include expanding
The government said money will be
the matter, these properties cannot be the scope of penalties to entities col- returned to 10 crore investors of 4
disposed of," minister state for finance laborating in cartelisation.
cooperative societies of Sahara group
Pankaj Chaudhary told Parliament.
At present, the antitrust watchdog, within 9 months following a Supreme
According to the data shared by him, the Competition Commission of India Court order directing transfer of Rs
BANKING FINANCE | MAY | 2023 | 15