Karnataka fears massive revenue loss after currency chaos

November 16, 2016

Bengaluru, Nov 16: The Centre's move to demonetize high value currency notes threatens to derail Karnataka's revenue collection this financial year. Officials fear that the state might miss its revenue target by at least Rs 5,000-Rs 15,000 crore for the current fiscal. The move has already affected liquor sales, property transactions, and sale of new and used vehicles.

Untitled-1"We are still assessing the impact and will get a clear picture by the weekend. We are certainly expecting some impact,'' said ISN Prasad, additional chief secretary, state finance department. "The government's revenues have taken a severe beating following the demonetization move. Whatever taxes were supposed to come to the state, including commercial taxes, sales taxes and all the revenues have been hampered. It will certainly have a huge impact on this fiscal's tax collection," said another finance department official.

The government's excise department has been the worst hit. The sale of foreign liquor has come down drastically in the past few days. A senior excise department official said: "Most of the excise revenue come from the sale of Indian Manufactured Foreign Liquor. Officials at government outlets have claimed that the sale has gone down by at least 50%."

The government had fixed an ambitious revenue target of Rs 16,510 crore for the excise department this year following a 25% hike in taxes on liquor. The government has collected only about Rs 7,500 crore so far. "People have stopped buying liquor, especially the expensive ones, due to shortage of high-value currency," added the official.

The revenue target for the stamps and registration department had been fixed at a higher Rs 9,100 crore for the current fiscal. Most of this amount comes from revenue layouts through stamp duty and property registration, which has completely stopped since November 8. "Bengaluru is a big market for secondary real estate, which traditionally works on 60:40 white and black money ratio. Ban on transaction of black money has badly hit property registration," said a senior official of the stamps and registration department.

Comments

Althaf
 - 
Wednesday, 16 Nov 2016

Not only in karnataka All over india it will effect.

Skazi
 - 
Wednesday, 16 Nov 2016

let the Govt reduce the Value of lands for registration purposes... then the govt will get back the revenues.... as the buyers will come forward in the real estate business .....
The govt does not apply its mind while fixing the land values ... It goes by survey no.... whether the site has road connection or not,, the govt value is same for all sites ....

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News Network
January 2,2020

Bengaluru, Jan 2: Accusing Prime Minister Narendra Modi of "neglecting" Karnataka ahead of his visit on Thursday, the state Congress questioned why he did not give adequate relief and pay a visit to the state, when most of its parts were affected by severe floods last year.

Modi will begin his two-day visit to the state on Thursday afternoon.

The Congress' Karnataka unit in a series of tweets also questioned the Prime Minister about not conferring the "Bharat Ratna" on Shivakumara Swamiji of Siddaganga Math, who passed away last year at the age of 111 years.

"Why you did not visit the state, when it was affected by floods? Despite the damage of over Rs 1 lakh crore why you did not declare it as a national disaster? Why you did not give interim relief? When the state government has given a report that the damage caused was to the tune of Rs 35,300 crore why did you sit quiet by giving just Rs 1,200 crore," the state Congress tweeted.

As many as 103 taluks in 22 districts of Karnataka were affected due to unprecedented floods in August, in which over 80 people were killed.

Around seven lakh people were shifted to safe areas during the deluge and thousands of houses were damaged.

In October, various parts of the state faced a deluge for the second time in two months, killing over 13 people and damaging thousands of houses.

Asking as to why the Centre was not giving the state's share of GST amount adequately, the Congress questioned as to why dues under MNREGA programme were not paid so far, and why Karnataka was being neglected while allocating grants.

Questioning Modi as to why he did not visit Tumakuru when Shivakumara Swamiji of Siddaganga Math passed away, the principal opposition party in the state Assembly, also sought to know why the seer was not conferred with the Bharat Ratna yet.

It also pointed out that former Chief Minister Siddaramaiah had written a letter in this regard in January 2018.

The Congress has also hit out at the BJP-led Central government over imposition of Hindi language by neglecting regional languages and mother tongue.

The Prime Minister will kickstart his visit to the state by paying tributes to the late pontiff's 'Gadduge' (final resting place) at the Math premises near Tumakuru.

Later, he will attend an event organised to give away Krishi Karman awards and to distribute fishing equipment at the government college ground in Tumakuru, before leaving for Bengaluru where he will be attending a DRDO event.

On Friday he will be inaugurating 107th Indian Science Congress here.

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News Network
May 21,2020

Mangaluru, May 21: The Supreme Court has awarded Rs 7.64 crore compensation to the next of kin of a man who was killed in a crash-landing of Air India Express Flight 812 from Dubai in Mangalore on May 22, 2010. The accident killed 158 out of 166 passengers on board.

The family of the 45-year-old Mahendra Kodkany, which include his wife, daughter and son, were earlier granted Rs 7.35 crore as compensation by National Consumer Disputes Redressal Commission (NCDRC). This compensation will now get enhanced after adding 9 per cent interest per annum (on the amount yet to be paid), to be paid by Air India.

Kodkany was the regional director for the Middle East for a UAE-based company. The aircraft overshot the runway and went down a hillside and burst into flames.

A bench comprising Justices D.Y. Chandrachud and Ajay Rastogi said: "The total amount payable on account of the aforesaid heads works out to Rs 7,64,29,437. Interest at the rate of nine per cent per annum shall be paid on the same basis as has been awarded by the NCDRC. The balance, if any, that remains due and payable to the complainants, after giving due credit for the amount which has already been paid, shall be paid within a period of two months."

The apex court noted that in a claim for compensation arising out of the death of an employee, the income has to be assessed on the basis of the entitlement of the employee. The top court said: "We are unable to accept the reasons which weighed with the NCDRC in making a deduction of AED (UAE currency) 30,000 from the total CTC. Similarly, and for the same reason, we are unable to accept the submission of Air India that the transport allowance should be excluded. The bifurcation of the salary into diverse heads may be made by the employer for a variety of reasons."

The top court observed that the deceased was evidently, a confirmed employee of his employer. "We have come to the conclusion that thirty per cent should be allowed on account of future prospects", added the court.

The top court noted that if the amount which has been paid by Air India is in excess of the payable under the present judgement, "we direct under Article 142 of the Constitution (discretionary powers) that the excess shall not be recoverable from the claimants," said the court.

Comments

A.Rahman
 - 
Friday, 22 May 2020

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Sure this is the second victory for the lawyer against arriers mismanagement.

 

Over all it is the sign  of a profesional ; qualified  eligble  lawyers efforts and right decision from a capable knowlegable judge. Suit case operating lawyers cannot handle such specilized cases.

They lawyer may handled rest of the vicitms cases or he not. But for his siincere efforts for the past ten years delcares whatn he  is. Am personally met him and  witnessed his court appearance  hope and wish him all the best and success .

 

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News Network
July 14,2020

Bengaluru, July 14: Ahead of the week-long lockdown in Bengaluru starting from Tuesday night, around 35,000 people have left the city and grocery stores and liquor shops are witnessing a rush with customers thronging to stock up on for the shutdown.

According to transport department officials, labourers from other parts of the state migrated in good numbers from Bengaluru ahead of the lockdown fearing that they would have to face similar challenges as they had to confront during the previous shuttering. 

"Yesterday 35,000 passengers left Bengaluru. The number is big given the fact that we are allowing a limited number of passengers in the buses to maintain social distancing," a KSRTC official said.

Tipplers made a beeline for liquor shops and a senior State Excise official said liquor worth Rs 230 crore was sold on Monday alone.

"There was apparently a mad rush yesterday.India Made Foreign Liquor worth Rs 215.55 crore and 14.83 crore worth beer was sold...," the officer said.

In view of the rising coronavirus cases in the city at an alarming proportion, the government decided to impose lockdown from Tuesday 8 pm till 5 am on July 22.

Later, Dharwad and Dakshina Kannada districts too decided to impose a lockdown for nine days and seven days respectively from Wednesday.

"For the past two days there is an unusual rush of customers in our store," an executive of the Metro Cash and Carry said.

According to him, people are buying grocery items and vegetables with long shelf life such as onion, potato, radish, carrot and beetroot.

A salesperson at the Star Bazaar too said people were thronging the store for the past two to three days.

During the Sunday curfew, Home Minister Basavaraj Bommai said the week-long lockdown will be stringent one and government has made all arrangements to address all concerns ahead of the shutdown.

As many as 19,702 people in Bengaluru have tested positive, of which there are 15,052 active cases, while 4,328 have been discharged.

The number of fatalities as of Monday is 321.

Across Karnataka, 41,581 people have tested positive for coronavirus including 24,572 active cases, 16,248 discharges and 757 deaths since the outbreak of the pandemic in the state.
 

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