In what is being seen as major relief to Telangana, the Central government has reportedly instructed RBI to go ahead and refund Rs 1,274.21 crore. The same amount was automatically deducted in the form of attachment from the Telangana treasury in the month of June 2015 by the central income-tax department.
According to an official release by the Telangana government, Rajat Bhargava, who is the joint secretary, ministry of finance, department of economic affairs, had reportedly written to the RBI deputy governor for issuing instructions to the concerned authorities for some expeditious action.
This involved reversing the entry regarding the deductions made by the RBI of an amount Rs 1,274.21 crore from the treasury account of the newly formed state of Telangana. The RBI deputy governor was also informed by the joint secretary that deducting from the consolidated fund of any state should be done as per constitutional and legal requirements.”
Venkaiah Naidu also piled up pressure two days ago
The amount was deducted by the tax recovery officers towards the IT dues of the United AP Beverages corporations which the government feels will be quite useful for spending on welfare schemes. Venkaiah Naidu also piled up pressure two days ago on finance minister Arun Jaitely and by next week, the refund is expected to happen.
