Palaniappan Chidambaram

NEW DELHI, June 21: Union finance minister P Chidambaram tried to clear up THE confusion of immunity to FERA violators under the Voluntary Disclosure of Income Scheme (VDIS) today. He said that any one against whom the Enforcement Directorate had issued summons under Section 40, started adjudication under Section 51, or launched prosecution under Section 56 can not declare his earnings or assets under VDIS.

He told press persons that the confusion arose because, in the last press conference on June 18, CBDT officials mixed up "detention under COFEPOSA" with "detention under FERA" -- he said this was because the officials were not used to the barrage of questions they faced on that day.

The Finance Minister also took pains to set at rest another controversy over whether his clarification -- that anyone being probed under FERA cannot avail of VDIS -- itself would stand scrutiny under law. According to one set of people, Chidambaram's clarification can be challenged in court of law. In which case, even those being investigated under FERA can file declarations under FERA.

Chidambaram pointed out that his clarification was based on the spirit of VDIS if an individual was already being investigated, where was the question of his declaration being "voluntary"? If, however, someone wanted to challenge it in court of law, the matter could be settled there. He said: "unless it is proved otherwise in the court of law, this would be the final interpretation."

He also announced that Rs 1 lakh will be given with immediate effect to 1,600 excise superintendent to acquire proper equipment like computers and printers so that they can function more effectively. ``It will also be ensured that all assistant commissioners will have a vehicle so that they cover their circles better. The excise department has said that they will increase revenue collection by ten times the amount which is spent on them.'' The lowest unit of the excise department will be strengthened, he said. The problem with customs duty revenue is that most of the imports are under-valued, he said. To tackle this, a Directorate of Valuation has started functioning from this month which will give online information about the international prices about various products. The Directorate has online connections to international price databases. Chidambaram admitted that it was too early to say whether the VDIS scheme would be a succes, ``I am pursuing a high risk, high profile campaign. Please help me succeed.''

On the issue of oil price hike, he said a solution will ``certainly'' be found at the crucial third steering committee meeting of United Front scheduled for June 27. ``The alternatives presented to the Steering Committee by the Left parties has been prepared and I have been assured by all political parties that in the next steering committee meeting we will find a solution.''

Sops to tax officers

Directorate of Valuation has started functioning to prevent under-valuation of imports, and hence loss of customs revenue. The Directorate will be connected with customs offices internationally and will give customs officials on-line information about the international prices about various products.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.