Hubballi's businessman buys Mallya's 2 luxury cars for mere Rs 1.58 lakh

Bengaluru, Mar 5: Karnataka is facing unprecedented economic difficulties following a Rs 8,887 crore reduction in the state's share in central taxes, cut in allocation under 15th finance commission and a Rs 3,000 crore hit in GST compensation, Chief Minister B S Yediyurappa indicated on Thursday.

Presenting the state budget for 2020-21 in the Assembly, he said Karnataka's share in central taxes has come down by Rs 8,887 crore in 2019-20 as per the revised budget estimates of the central government. Therefore the state's revenue resources have been reduced. Apart from this, Rs 3,000 crore GST compensation will also be reduced as collection from the GST compensation cess is not as expected, the Chief Minister said. "With all this it has become difficult to reach to reach the 2019-20 budget targets and to manage this situation within the bounds of the Karnataka Fiscal Responsibility Act, an inevitable situation has arisen this year to cut down the expenditure of many departments," he added.

As per the interim report submitted by the 15th finance commission, there is a reduction in the state's share of central taxes to 3.64 per cent compared to 4.71 per cent fixed by the 14th finance commission. In view of this, there will be a reduction of Rs 11,215 crore in the state's share of central taxes in 2020-21 budget, when compared to the previous one.

He, however, noted that the allocation recommendation of the 15th finance commission is limited to one year only and the complete report for the period 2021-22 to 2025-26 will be submitted in October 2020.

"Our government will soon submit a revised memorandum to the commission to set right the loss caused to the state with regard allocation for the year 2020-21 and give more allocation for the remaining period," the Chief Minister said. He also said, when compared to the previous year, there is an increase of approximately Rs 10,000 crore for 2020-21 with regards to government employees salary, pension and interest on government loans, but there is no proportionate increase in resources as compared to committed expenditure. "Due to this reduction of the state's share of central taxes as per the 15th finance commission report and other developments, serious difficulties are being faced in resource mobilisation efforts of the state," Yediyurappa said. "This magnitude of economic difficulties was never faced in the previous years by our state," he added.

However, the state's own tax revenue collection is excellent during this year, he said. As compared to the previous year, there is a growth of 14 per cent in State GST collection. "Based on this, in the new budget, efforts are being made to manage the reduction in the share of central taxes by stabilising the state's own resources more", the Chief Minister said.

Karnataka recorded a gross state domestic product growth rate of 7.8 per cent in 2018-19 and Yediyurappa said for the current financial year it is estimated to be 6.8 per cent.

Bengaluru, Mar 4: The Karnataka High Court has issued a notice to the state government in connection with the denial of retirement benefits to a retired deputy commissioner of commercial taxes who had fought against the illegal iron ore lobby.

Justice G Narendra also directed the state to respond to the notice before March 9, stating the reasons for withholding the officer’s retirement benefits.

Advocate Ramananda, appearing for the retired officer Josephat Andrews, explained that the single-judge bench also warned the government of stringent action.

Petitioner Josephat Andrews said his retirement benefits amounting to Rs 25.88 lakh were being withheld since 2014.

In 2009, Andrews detected a huge scam involving Vijaya Leasing, a company associated with former minister Gali Janardhan Reddy. Immediately he wrote to his higher officials explaining to them how the department was owed Rs 1,400 crore in taxes by the company. Immediately after that, Andrews was transferred to Bengaluru.

The media exposed the scam in 2012. Thereafter, to harass the officer, Andrews was served notice for allegedly not conducting an inspection of M/s Vijaya Leasing, which was controlled by the family of then tourism minister Gali Janardhana Reddy, on July 11, 2012.  He was discharged by a full departmental enquiry.

The petitioner was issued a second show cause notice on Jan 29, 2014 on the same charges. Before his retirement, he was docked two increments, denied promotional benefits and his pension was reduced without following due process.

He was served yet another notice with charges that he did not inspect goods vehicles, and an order was passed on April 30, 2019 reducing his pension by 5 per cent, an unprecedented punitive action.

This order was quashed by the Karnataka Administrative Tribunal (KAT), which also ordered payment of retirement benefits to Andrews within five months. However, the benefits were not released to him.  

“Rule 214 of the Karnataka Civil Services Rules (KCSR) make it clear that no enquiry can be held four years after an officer’s retirement.  Belying all statutory rules and precedents of the Supreme Court, Josephat Andrews’ retirement benefits were withheld for five years. Andrews therefore approached the High Court,” advocate Ramananda explained.

Josephat Andrews recalled to Deccan Chronicle that although mining activity was in full swing in 2008, the commercial tax department maintained that it had nothing to do with mining. “I travelled to Gujarat, Maharashtra and Bellary to investigate. I found tax evasion of thousands of crores. When I visited M/s the Vijaya Leasing facility – it was operating from an old oil mill premises–within 20 minutes I got calls from Ali, a person claiming to be the personal assistant of Gali Janardhan Reddy. He told me to get out of the premises as it belonged to his boss. Then calls came from minister Sreeramulu and MLA Nagendra. 

Within minutes 200-300 rowdies gathered around the building and my superior asked me to come back. Instead of filing a police complaint and forming a special team to deal with the situation, the department transferred me to Bengaluru,” he explained.

Talking about the High Court directive, Josephat Andrews said, “I have suffered a lot. Instead of getting a reward for increasing revenues by Rs 2,000 crore, I was punished.”

Udupi, May 18: G Jagadeesh, Deputy Commissioner of Udupi today warned that criminal cases would be filed, if people under quarantine roam around, as they put the lives of others in risk, by coming out.

He said: "There are more than 6,000 people under quarantine in hotels, hostels, schools etc in different parts of the district. They include those who returned from other countries and other states.”

“We have allowed them to return to the district. Now I am receiving complaints that many of them are violating quarantine guidelines and venturing out. This is unacceptable.”

“As it is a risk to the whole society, severe action will be taken against the neglect and apathy of the persons under quarantine,” he said.