"Sunday Special"Unvieling Essar Oil Company Scam

Adding a blot on the current Narendra Modi led Gujarat government’s working, Congress has brought to light one of the “biggest scandal of benefiting by any State Government ever to a corporate body” in the form of Essar Oil’s tax exemption of Rs. 6,030 crore!

Essar Oil company has been receiving hefty favors from Chief Minister Narendra Modi. Here I have presented documented proofs of how the company did not bother to deposit the sales tax and VAT required to be paid at the prevalent rates. Ironically, our current state government never raised demand in strict words for recovery thereafter. Either our Chief Minister has to dumb enough to look over this matter or he deliberately made this decision. According to the Industrial Policy 1995-2000, Essar was accorded with benefits of incentive as per “Premier Industry Incentives Scheme: for keeping with them amount of sales tax upto 125% of the capital invested as deferred sales tax payment for 17 years and therefore, it was to be repaid to the Government in installments. While according status of “Premier Industry” by the State government to Essar Oil Company for its Jamnagar Refinery Unit vide its letter dated 25-6-1999, sanction was given for investment worth Rs. 2,686 crores for 9 million tonne production. As per the condition of the said letter, the production was to be commenced by 1-1-2000 which was later extended till 15-8-2003. However, Essar Oil in fact commenced production 3 years late i.e. on 26-11-2006. Even after their late production Essar Oil was allowed to retain sales tax with it instead of recovering by the State Government as per the rules; whereas recovery of Sales Tax amount was started immediately from identically situated industrial units. You can well judge why this happened, as the Sales Tax department did not move for this Narendra Modi-favoured Essar oil company. Even when the Essar Oil company preferred petition before the High Court of Gujarat for extending it benefit of exemption under the 1995-2000 policy, the State Government intentionally did not represent its case properly before the court. Since Essar Oil Company commenced construction of refinery without obtaining permission from the Environment Department, Director and General Manager of Essar company were arrested and the construction without permission was stayed by the High Court of Gujarat. After this stay-order was passed, Essar company did not prefer appeal before the Supreme Court for a period of five and a half month. This important aspect of the case was not brought on record by the State Government during hearing of writ petition of the Essar Oil hence judgement was rendered by the High Court in favor of Essar Oil. The modus operandi adopted by the State Government of restraining themselves from making proper representation before the Gujarat High Court for extending benefit worth Rs. 6,030 crores to Essar, was intended to be adopted before the Supreme Court as well and that is the reason why the State Government appointed as its Senior Council the person who remained as Senior Counsel of Essar oil earlier! When this entire game of the State Government was disclosed on the floor of Assembly by the Congress leaders including Leader of Opposition Mr. Shaktisinh Gohil, the State Government was required to change its lawyer and had to submit the information which was provided by the Congress party and on the basis of the said information, Supreme court rendered judgement against Essar and has directed Essar to make payment of Rs. 9,100 crore including Rs. 6,030 crore worth Sales Tax with interest accrued thereon.