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This is an archive article published on July 17, 2009

Blue chip defaulters: BPCL,IOC,Reliance make it to errant list

Over half-a-dozen public sector undertakings and blue chip companies figure in the list of 89 entities that owe more than Rs 10 crore of sales tax dues each to the state government since the last three years.

Over half-a-dozen public sector undertakings and blue chip companies figure in the list of 89 entities that owe more than Rs 10 crore of sales tax dues each to the state government since the last three years. The government has come up with various reasons for non-recovery of these dues,saying they are at various stages of recovery or litigation.

Congress MLA from Rapar and former finance minister Babubhai Meghji Shah had raised the issue in the state Assembly recently. In its reply,the government admitted that it was not able to recover the full amount from these defaulters.

The public sector defaulter companies include Indian Oil Corporation Ltd,Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd besides Gujarat Agro Industries Corporation,Gujarat Small Industries Corporation,Gujarat State Investment Corporation,Oil and Natural Gas Corporation,Gujarat Co-operative Milk Marketing Federation Ltd and Charotar Sahakari Khand Udyog in the co-operative sector.

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Among the major private sector players who owe sales tax dues in excess of Rs 10 crore to the government are Nirma Ltd,Reliance Industries,Essar Steel,Larsen and Toubro,Baroda Rayon,Gujarat Siddhi Cement,Saurashtra Cement,Mahendra Mills,Dairy Den,Hynoup Food and Oil,N K Industries,Balaram Cement,Symphony Comfort Systems,and Dharnendra Industries.

The reason for non-recovery in 22 cases is that businesses have been shut down whereas in nine cases,the owners of the firm have gone missing,according to the government records. In one case,the trader is in jail and he has got no property in his name while in another case,the defaulter has pleaded insolvency. Most of other cases are either under dispute or under reference to the Board for Industrial and Financial Reconstruction.

However,it has also pointed out that in some cases,part recovery has been made. Accordingly,the government recovered Rs 170.42 crore in 2006-07,Rs 439.61 crore in 2007-08 and Rs 23.51 crore in 2008-09. Of them,Essar Steel alone paid Rs 148.28 crore by April 2008. Public sector IOC and BPCL paid Rs 248.13 crore and Rs 163.85 crore respectively in 2007-08.

Gujarat Siddhi Cement also responded by paying Rs 15.60 crore in 2006-07 and Rs 15.55 crore in 2007-08. Also,Reliance Industries paid Rs 28.55 crore in 2006-07 and Larsen and Toubro paid Rs 2.16 crore toward sales tax dues.

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