‘Revoke tax exemptions to Adani, Hindujas’

Visakhapatnam: Former Energy Secretary EAS Sarma has demanded the government to revoke the tax exemption notifications for Adani and Hindujas forthwith. In a letter addressed to the Chief Secretary of Andhra Pradesh Government, Sameer Sharma, on Monday, he also demanded an independent enquiry into the concessions given to the Adani and the Hinduja Groups in […]

Visakhapatnam: Former Energy Secretary EAS Sarma has demanded the government to revoke the tax exemption notifications for Adani and Hindujas forthwith.

In a letter addressed to the Chief Secretary of Andhra Pradesh Government, Sameer Sharma, on Monday, he also demanded an independent enquiry into the concessions given to the Adani and the Hinduja Groups in recent times, including handing over valuable lands to them in and around Visakhapatnam at concessional prices, surrendering the government’s 11 per cent strategic equity share in the Gangavaram Port Ltd. (GPL) at less than the market price and the latest tax concessions to Adani, Hindujas and the other private companies.

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Referring to the reports in a section of the press that the government had extended the validity of the `notified area’ concession to the GPL in so far as GVMC’s taxes are concerned, he recalled that the government had earlier surrendered its 11 per cent strategic equity share to the Adani Group at a nominal price and allowed the latter to become a 100% owner of the port, despite protests from the public.

“Compounding this impropriety further, the government has now extended the municipal tax exemption benefit to the Adani Group, which is highly improper. The GPL is in occupation of 2024 acres of valuable government land given to them in the past at a highly concessional price. The actual extent could be more. The present day market value of this land is more than Rs 20,240 crore. GVMC’s recently introduced property taxation is based on the capital value of the land. Considering that the GPL is using the land for a commercial purpose, the annual property tax on this land at 2% of the capital value would work out to more than Rs 404 crores. In other words, the undue annual largesse being now given to the Adani Group would exceed Rs 404 crores, whereas, the ordinary citizens of Visakhapatnam, including the small business owners, small households etc., are forced to bear the brunt of the newly imposed tax burden for no fault of theirs,” he observed.

In this context, Dr. Sarma pointed out that despite the fact that there are several laws in force to protect the slum dwellers, the small vendors, the hawkers etc., GVMC displayed no hesitation to evict them illegally and ruthlessly, whereas the Municipal Administration and Urban Development department seemed to bend backwards to accommodate big businesses who enjoy political patronage. “It actually amounts to the Vizag citizens indirectly subsidising the Adani Group to the extent of Rs 400 plus crore annually, just because that group has apparently a nexus with the ruling political elite! This is unacceptable,” he stated.

Noting that the GVMC was not spending sufficient funds on the development of the slums and not providing the basic amenities to all its citizens, he said that even for the upkeep of the parks for the citizens, which is a Constitutional obligation of a municipality, the GVMC was collecting user charges. It also had not been able to provide adequate cremation facilities in the city, he stated, and argued that against this background, this latest largesse to the Adani Group raises questions of propriety and ethics.

Dr. Sarma also reminded the State government that it has extended a similar tax concession to the Hinduja Group for its power plant near Parawada, whereas that company had not charged even a paisa less for the electricity it has supplied to the State. “Why should such profiteering companies be given undue concessions?,” he asked.

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