Big corporate houses default in sales tax payment in Gujarat

Gandhinagar, Mar 5 (UNI) As many as 44 big corporate houses, including Essar Steel and Reliance Industries, owe Rs 3,500 crore in sales tax to the Gujarat Government till December, 2006.

This was informed by Gujarat Finance Minister Vajubhai Vala in the Gujarat Legislative Assembly. The payment has been pending since the Congress rule in 1990-95, he said.

Mr Vala said Essar Steel owes Rs 1225.15 crore, B G Exploration owes Rs 655.87 crore, IOC -- Rs 308.15 crore, ONGC -- Rs 221.14 crore, BPCL -- Rs 167.85 crore, and Reliance Industries owes Rs 111.21 crore.

Mr Vala was replying to a written question raised by opposition Congress MLA Punjabhai Vansh during the Question Hour.

The Finance Minister said during the year 2006, the State Revenue Department had recovered Rs 1165.26 crore from several corporate houses. Properties of Nova Metro Chemicals, Crompton Greaves and Sevalia Cement were seized after they defaulted in sales tax payment, he said.

On the slow recovery process, Mr Vala said it was because the corporate houses had moved the courts, tribunals or Board for Industrial and Financial Reconstruction (BIFR).

UNI