Page 24 - Banking Finance February 2023

LEGAL UPDATE

hardships faced by citizens following The issue had figured in discussions at depending on the victim's dying decla-
demonetisation six years ago cannot be a meeting called by the finance minis- ration - who had set on fire a 15-year-
a ground to reverse the decision. try last month on sectoral issues includ- old girl after he failed to sexually as-
ing loan recoveries, the official added. sault her. The crime dates back to Feb-
On creating a fresh window for return
ruary 14, 2011.
of demonetised currency, the majority Another senior bank executive said
verdict said it did not have the exper- lenders have sought that a specific The minor girl had died during treat-
tise to "frame such a scheme". exemption be provided in such cases. ment after recording her statement in
front of a magistrate. The accused,
Ploughing a lone furrow, Justice BV "This will serve a dual purpose. First,
who was 19 then, was convicted after
Nagarathna said though the objective the defaulter will not get any benefit,
the court considered the girl's dying
of demonetisation was noble and and secondly, there will be no financial
declaration and autopsy report enough
aimed to achieve economic health and loss to the bank," he said, adding that
stability by targeting fake currencies, banks can further provide details of to prove guilt. This, despite the fact
terror funding and black money, the such transactions to tax authorities. that during the course of trial, the girl's
process adopted by the Union govern- family had changed their statements.
As per the latest data, the number of
ment was illegal. She quashed both the Additional district government counsel,
cases referred by scheduled commer-
2016 ordinance as well as Parliament- Kapil Katiyar, told: "The crime was re-
cial banks under the Securitisation and
enacted Specified Bank Notes (Cessa- ported from a village in Mituali on Feb-
Reconstruction of Financial Assets and
tion of Liabilities) Act, 2017. ruary 14, 2011. The girl was alone
Enforcement of Security Interest
when Angad Raidas, a neighbour,
(SARFAESI) Act for FY 2019-20 and
Proposal on TDS relief on 2020-21 are 105,000 and 57,331 (pro- barged into her house and attempted
to rape her. When she resisted, the
property sold for recover- visional), respectively
accused poured kerosene and set her
Experts say this situation, where the
ies under review on fire. She died on February 18 and
defaulter seems to benefit, is an unin-
The government is examining a sug- an FIR was registered against Raidas.
tended consequence of the way cur-
gestion from banks to exempt sale of The accused was arrested and sent to
rent provisions are legislated vis-a-vis
immovable property mortgaged to jail. "
how seized properties are transferred
lenders for recovery of bad loans via Katiyar added: "A charge sheet was
or sold by financial institutions, includ-
auction from tax deducted at source or subsequently filed against the man in
ing banks.
TDS.
which he was charged under IPC sec-
"To address this anomaly, an exception
Section 194-IA of the Income Tax Act tions 326 (voluntarily causing grievous
could be carved for financial institu-
mandates that TDS, at the rate of 1%, hurt by weapon or means), 302 (mur-
tions, for tax deduction on purchase of
be deducted from the consideration der), 354 (attempt to outrage the
properties in such cases, so that they
for the transfer of an immovable prop- modesty of a woman) and 452 (house
are not worse off," said Vikas Vasal,
erty if it exceeds 50 lakh. Lenders have trespass with intent to hurt).
national managing partner-tax at
represented to the government for
Grant Thornton Bharat. Senior prosecuting officer (SPO), SP
keeping such sales out of the purview
Yadav, said, "In the charge sheet, the
of TDS.
girl's parents and neighbors were the
'Dying declaration
"Banks have argued that this results in eyewitnesses. They changed their
losing 1% of the sale value of the prop- enough': Court gives man statements later and told the court
erty during recovery. The matter is that they had not seen the accused at
life despite victim's kin
under consideration," said an official the crime scene. Autopsy report and
aware of the deliberations. changing statements her dying declaration, recorded by
Banks say the loan defaulter claims The court of additional district and tehsildar Yaduveer Singh Yadav on Feb-
benefit to the extent of 1% of sale value sessions judge, Subhash Singh, in ruary 17, were considered as main
of the property citing the TDS and they Lakhimpur Kheri has awarded life im- evidence against the accused in this
want this corrected. prisonment to a man - after primarily case."
BANKING FINANCE | FEBRUARY | 2023 | 21