Monday, September 5, 2011

What should be their priority d 9 lakhs dat Arvind Kejriwal may or may not owe, or the nearly 900 crore that have been pending recovery 4 last 10 yrs?

9 lakhs or 900 crores?

In February 2006, Arvind Kejriwal submitted his resignation from government service. In August 2011, about 5 years later, the government discovered that it was owed Rs 9 lakhs by Arvind Kejriwal, which is inclusive of interest amounting to Rs 5 lakhs on the amount of roughly Rs 4 lakhs which the government says Arvind Kejriwal wrongly drew as salary.

It does not bother me a great deal whether or not the government is technically correct in its interpretation of the provisions regarding Study Leave, and in its conclusion that Arvind Kejriwal violated the terms and conditions of the bond he signed when he proceeded on leave and was therefore not entitled to draw salary for that period. That is a matter which can be resolved quickly enough.

What truly bothers me is that the government has made this momentous discovery at a time when Arvind Kejriwal is being hailed as one of the chief architects of a people's movement which may just change the rules of the game where participatory democracy and accountability in governance are concerned. Instead of welcoming the long - awaited awakening of the people, especially of the comfortably fed and housed middle class, the rulers have "elected" to turn a deaf ear to the voice of the people and launch what they mistakenly consider "persecution" of the people's hero.

What short shortsightedness, what utter lack of perspicacity! Do they not understand that a man who has won the hearts and heads of the people with his deep rooted commitment to public good, courage of conviction, sincerity of purpose, willingness to sacrifice and acumen to lead will not be cowed down by a notice from the Income Tax authorities?

The Income Tax authorities would be better advised to expend their energy, time and ingenuousness on recovering the thousands of crores owed as Income tax dues by Individuals and corporates. Under the FRBM Rules, 2004, the Union Budget now includes a statement "Tax Revenues raised but not realised", a euphemistic manner of stating the bald truth about the income tax dues that the government is unable to recover from defaulters. The statistics are mind boggling. Individuals owe the government Rs 57,932 crore, and corporates owe another Rs 51,553 crore ----- a grand total of Rs 109, 485 crores of Income Tax not paid which the government finds itself unable to recover!

As per the Union Budget, an amount of Rs 42,949 crore is not even under dispute, which means that the government can employ any means it chooses, including coercive measures such as attachment and sale of the defaulter's property, to recover this amount. Of this, Rs 828 crore is the undisputed amount owed by individuals to the government for more than 10 years !

Would you not agree that the Income tax authorities should focus their efforts on recovering these dues? The political bosses may desire action that is politically expedient. They may direct that an ill-advised notice be sent by the Income tax authorities in a vain attempt to discredit Arvind Kejriwal. The Income tax authorities, surely, should know better. What should be their priority ----the 9 lakhs that Arvind Kejriwal may or may not owe, or the nearly 900 crore that have been pending recovery for more than 10 years?

Do take a look at Annex 11 of the Union Budget ----- http://indiabudget.nic.in/ub2011-12/rec/annex11.pdf .

No comments: