Page 16 - Banking Finance September 2019

ROUNDUP

Businesses will not face Two rail PSUs IRCTC, IRFC to be listed soon
The two railway PSUs, Indian Railway Catering and Tourism Corporation (IRCTC)
tax harassment any
and Indian Railway Finance Corporation (IRFC), will be
more: Sitharaman listed over the next few months as part of the
Finance minister Nirmala government’s ambitious disinvestment programme for
Sitharaman has the current financial year. IRCTC filed a draft prospec-
tus for sale of two crore shares, which will reduce the
assured that
Centre’s equity by around 12%.
businesses in the
country will not With valuation rising, on the back of a reversal in the falling revenue graph, the
have to face any government decided to go ahead with the IPO plan. Over two years ago, the
tax harassment government had approved listing five railway PSUs — IRCON International,
and a new sys- RITES, Rail Vikas Nigam, IRFC and IRCTC. Among them, IRCON International and
tem has been introduced to make RITES listed during the last financial year. While the IRCTC listing is expected to
help the government generate Rs 500-600 crore, the Centre’s plan to list IRFC,
officials accountable for their com-
munication with the assessee. which has been revived, is expected to raise around Rs 2,000 crore through sale
of 15% stake.
The finance minister also said that
the government is committed to re- PSU employees will not be protected from criminal
spect wealth creators, a sentiment
that Prime Minister Narendra Modi persecution: SC
shared in his Independence Day The Supreme Court has recently ruled that employees of Public Sector Under-
speech earlier this month. takings (PSUs) are not entitled to receive protec-
tion from criminal protection automatically on
Sitharaman’s assurances indicate
that the direct tax administration, account of being a ‘public servant’.
which has been leading a drive The Supreme Court has overruled Section 197 of
against black money and tax eva- the Code of Criminal Procedure (CrPC), which un-
sion, will be closely monitored by the derscores that prior sanction from a competent
political leadership on how it con- officer was necessary to prosecute a government
ducts its enquiries and assessments. servant for alleged criminal act done in discharge of his official duty.
“There won’t be any fishing expedi- Bharat Sanchar Nigam Limited (BSNL) has filed an appeal against a high court order
tion by officials," Sitharaman said. which had also held that protection of sanction under CrPC was not available to the
The minister also stated a new cen- officers of PSUs. The Supreme Court dismissing that said that trial court magistrate
tralized computer system has been should try and complete proceedings in the case within one year.
set up for issuing income tax orders, In 2003, a criminal complaint was filed against BSNL for engaging “unregistered
notices and summons with a unique security guards", which was in violation of an agreement the telecommunica-
document identification number, or tion company had with Security Guards Board (SGB).
DIN, effective 1 October. Acting on the complaint filed by SGB, the trial court ordered framing of charges
“This is one way in which fears of ha- against two officers of BSNL, who belonged to the Indian Telecommunication
rassment of assessee can be ad- Service. BSNL appealed against the same in the high court, which dismissed the
dressed. Unless a notice or document case and held that “the protection of sanction under Section 197 of CrPC was not
carries a DIN, it need not be taken available to officers of government companies or public undertakings even if it fell
seriously by the assessee at all. I within the definition of ‘State’ under Article 12 of the Constitution”.
want to assure that we are respon- The said officers of BSNL had approached the Supreme Court. However, the
sive and the reform process will con- apex court, dismissed this plea and said that since these employees had been
tinue. There is no intention to pros- later absorbed by BSNL, they could not be granted automatic sanction from
ecute," she said. persecution.

16 | 2019 | SEPTEMBER | BANKING FINANCE