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Posted On : 17 Mar, 2017  Source : PTI  Place : New Delhi 
Loans to Vijay Mallya given by UPA: Govt
Loans to the tune of Rs 8,040 crore was given to liquor baron Vijay Mallya when the previous UPA government was in power, but action against him for defaults is being taken by the Modi government, a minister said today.

Till December 31, 2016, there were 9,130 willful defaulters in the country who had taken loans amounting Rs 91,155 crore from various PSU banks, Minister of State for Finance Santosh Gangwar said in Lok Sabha.

Replying a supplementary about action against Mallya, Gangwar, without taking his name, said the person whose name was mentioned was given loan in September 2004 and it was reviewed in February 2008.

The loan of Rs 8,040 crore was declared non-performing assets in 2009 and the NPA was restructured in 2010.

"Our government has taken action against him. He is currently living in the UK. Various agencies have issued summons to him. Following our requests, the Ministry of External Affairs has revoked his passport and we are taking action so that he faces justice," he said during Question Hour.

The Minister said among the 9,150 willful defaulters of PSU banks, suits were filed against 8,364 defaulters who had taken loans amounting Rs 85,258 crore, while FIRs were lodged against 2,024 willful defaulters who had taken loans worth Rs 29,557 crore, Gangwar said.

Action against 6,207 willful defaulters taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, he said.

No proposal to replace Income Tax with BTT: Govt

There is no proposal "at present" to replace Income Tax with Banking Transaction Tax or BTT, the government said on Friday.

To a query if the government has any proposal to replace the Income Tax with BTT, Minister of State for Finance Santosh Kumar Gangwar said: "There is no such proposal under consideration of the government at present." 

There is no tax by the name of BTT in the statute, he said in a written reply in the Lok Sabha.

He said however that earlier a Banking Cash Transaction Tax (BCTT) was being levied at the rate of 0.1 per cent on cash withdrawals from banks exceeding specified limit.

The BCTT was introduced in 2005 by the then UPA finance minister P Chidambaram. The levy was, however, withdrawn with effect from April 1, 2009.

The minister further informed that the collection of BCTT over the years has been very insignificant as compared to collection of Income Tax.

In January, however, the government had said that it will examine the recommendations of the chief ministers panel on encouraging digital payments post demonetisation for levying BCTT on cash deals of Rs 50,000 and above before taking a final view on it.

With Andhra Pradesh Chief Minister Chandrababu Naidu as convener, the panel on digitisation had submitted its interim report to Prime Minister Narendra Modi.