PUBLIC MONEY LOCKED UP IN LITIGATION
A large sum of Rs. 152,797.98 crores
of public money is locked up in litigation in various fora for
direct and indirect taxes and courts of law as on March 31, 2002.
Of the total amount, Rs. 110,000
crores are locked up in cases of debt recovery before the Debt
Recovery Tribunals. This money was taken by various companies
and business houses as loan from Government banks and public financial
institutions. In the area of direct taxes, Rs. 25,080 crores is
locked up before Commissioners of Income Tax (Appeals) all over
the country, Rs. 7,569 crores before Income Tax Appellate Tribunals,
Rs. 2,127 crores before Supreme Court and High Courts and Rs.
8,021.98 crores on account of indirect taxes before various fora
of indirect taxes.
The cumulative public money locked
up in litigation on account of direct taxes and indirect taxes
went up from Rs. 31,349.79 crores as on March 31, 2000 to Rs.
32,764.75 crores on March 21, 2001 and to Rs. 42,797.98 crores
on March 31, 2002. These exclude the public money locked up in
loans given by Government banks and public financial institutions.
Meanwhile, the Government has taken
various steps for speeding up the disposal of debt recovery cases
and those involving income tax and excise duties. The President
has already promulgated an Ordinance for debt recovery with a
view to ensuring faster recovery of debts from companies and business
houses. Besides, the rules and procedures of judicial and quasi-
judicial bodies have been simplified on the basis of the advice
and recommendations of expert bodies like the Law Commission and
the Malimath Committee. Special tribunals like Income Tax Appellate
Tribunals have been set up to expedite disposal of cases.
In addition, whenever
stays are granted by the courts, all efforts are made to get the
stays vacated for deciding the cases on priority. Measures are
also taken to get the pending cases finalized by bunching them
issue-wise and by cases covered by earlier judgements of the Supreme
Court and High Courts and requesting the courts concerned for
early hearing and one time disposal of such cases. Continuous
monitoring and coordination of the work relating to court cases
is also undertaken in collaboration with legal agencies handling
court cases on behalf of the Government.
