A worrying trend is developing in the country -- promises made by both the central as well as state governments are jettisoned as soon as everything doesn't go the way the government wants. Consider the fact that states like Rajasthan are taking a stand six years after the announcement of the policy that IPPs will not be compensated in full for fluctuations in the value of the rupee. The CBDT has now directed commissioners of income tax to ask the declarants to produce "credible and satisfactory" evidence about the year of acquisition of silver articles.

Worse, CBDT has also directed commissioners to review the certificates already granted. This will open up the older cases, leading to unavoidable harassment, besides violating secrecy. The CBDT had clearly laid down the procedure for availing of the benefit under VDS, and changing it at this late stage will be unfair to the genuine declarants. The CBDT should, in the first instance, have kept jewellery out of the purview of the scheme.

Incidentally, the recent directive may lead to more litigation -- a Bombay high court judgement says that the commissioner has no power to cancel or review a certificate already issued. So far as the forex fluctuation for IPPs is concerned, this was to be borne by the state electricity board concerned. Now, frightened by the decline in the value of the rupee, the SEBs say that they will bear only a part of the burden. This will throw all calculations by the IPPs out of gear. Did the SEBs feel that the rupee will remain stable for all time? Actions such as these throw doubt on the competence of those who formulate the schemes as well as violate the sanctity of policy.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.