Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: due date for vat payment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: TDS :: form 3cd :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARD :: VAT Audit :: list of goods taxed at 4%
 
 
« General »
 Why consumers should welcome GST
 Retailers need to file single GST return every month
 Aadhaar is must for income tax returns if you have one; Here's how you can file it online
 Will it be a tax haven above the law?
 Your mutual fund investment tax efficient? Here are 3 steps to ensure utmost efficiency for your portfolio
 Finally a goods and services tax. But what lies ahead?
 Tax May Rise On Outbound M&As, Indian Mncs’ Investments
 Filing income tax return? Do remember to claim benefits on your reimbursements
 Banks will have a hard slog ahead to get GST-ready
 Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956
 Introduce indemnity clauses with suppliers on tax compliance: Expert

I-T's claims in Harshad scam cleared
March, 17th 2011

Nearly two decades after the Harshad Mehta scandal resulted in claims worth thousands of crores, the Income-Tax department has got its full share of the amount that was due from the late stock broker . The State Bank of India, or SBI, and Standard Chartered, however, may have to wait for some more time before their dues are cleared.

The I-T Department and State Bank of India together received payments totalling 2,195 crore on Wednesday in the largest disbursement of claims against losses incurred on account of the 1992 securities scam.

With this, the custodian appointed by the central government to liquidate the assets of Harshad Mehta and his entities and to distribute the proceeds against his outstanding dues, has released more than 4,000 crore. Of this, 3,400 crore has gone to the I-T department alone, custodian Satish Loomba told reporters.

While the amount released so far are the priority payments of principal amount, the total outstanding liability of Harshad Mehta and his group companies relating to the scam and non-scam period amounts to a huge 27,000 crore.

This includes the I-T department's demand of 22,000 crore (principal amount of 2,100 crore and interest of 20,000 crore), banks and financial institutions' share of 5,200 crore and 200 crore due to other parties, Mr Loomba said.

Of the 2,194 crore released on Wednesday, 1,996 crore was paid to the I-T department while the remaining was 199 crore was given to SBI. A total of 1,700 crore is due to banks, of which Rs 800 crore has been cleared, said Mr Loomba.

He also said Standard Chartered Bank has claimed 500 crore, which, is yet to be released. The bank has moved the Supreme Court claiming a share of Harshad Mehta's assets. It has appealed against an order of the special court, but has not been able to get any stay on the disbursement of the proceeds from the sale of his assets. The total I-T demand of 2,100 crore, the principal amount, has been met in full, said Mr Loomba.

Standard Chartered Bank has said the distribution based on the date of decree is wrong.

The custodian has attached both movable and immovable assets of the stockbroker and his group companies, which largely include cash and securities. The funds released from the sale of assets are being disbursed among the claimants, which mostly includes banks and financial institutions.

Soon after the scam broke, parliament legislated the Special Court Act to deal with the extraordinary situation arising out the scam. The Act gives powers to the custodian to notify individuals and entities and attach their assets to solve dispute and settle claims of the scam-hit parties. The custodian also received claims from many individual investors for loss of capital on account of the scam. The custodian, however, could not act on those claims, as, said Mr Loomba, the Act gives priority to bigger claimants like the I-T department, banks and financial institutions.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Contact Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions