Tuesday, July 10, 2012

Essar bank account freeze - now what

Gujarat govt. took an aggressive move and freezes 3 bank accounts of Essar Oil Ltd. In Jamnagar district.

While the state sales tax department shows no remorse in this act, Essar oil expressed "surprise and disappointment" over the government's "unexpected" move.

Essar already intimated its position to State Govt. and also updated that it will deposit 1000 cr. In 30 days.

On June 25, a High Court division bench, rejected the plea of Essar Oil for relief in repayment of Rs 8,414 crore due as sales tax deferment liability.

The company, which was building a nine-million tonne per annum crude oil refinery at Vadinar, needed to complete the project by April 2003, in order to qualify for sales tax incentives. But the project began operations in 2006.

This was to recover sales tax dues of over Rs 8,000 crore from Essar Oil Limited.

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