The government is poised for a windfall of over Rs 2,000 crore (Rs 20 billion) in the current fiscal through the sale of assets, including shares, seized by various government agencies after the 1991 stocks scam.
Officials said the income tax department had the first charge on the seized assets. Banks and financial institutions have second charge, all other claimants follow.
The custodian of the assets started auctioning them in October 2001, and the process gathered steam in 2002-03. The custodian has so far deposited over Rs 1,000 crore (Rs 10 billion) in various banks.
This includes cash seized during raids, the dividend income on the shares in its custody and the interest earned on the cash deposits over the last decade.
The custodian handed over Rs 400 crore (Rs 4 billion) in 2001-02 to the income-tax department and another Rs 550 crore (Rs 5.50 billion) in 2002-03.
The total outstandings of the income-tax department are about Rs 3,000 crore (Rs 30 billion) for the period April 1, 1991 to June 6, 1992.
Revenue department officials said the realisation of dues from various parties involved in the 1991 scam was long overdue.
With the government likely to appoint more judges to hear cases pertaining to the scam, the process could be expedited, they said. "We expect to recover much of the dues this fiscal," an official said.
The custodian last week also received permission of a special court to sell 8.5 million benami shares seized after the scam.
These shares will be dematerialised and auctioned after the companies transfer the shares in the custodian's name.
While the State Bank of India has received Rs 430 crore (Rs 4.30 billion) and Andhra Bank Rs 89 crore (Rs 890 million), Syndicate Bank was returned 1.5 million shares of United Phosphorous.
The custodian is also pursuing the sale of seized property.
Auction time
The custodian of the assets started auctioning them in October 2001, and the process gathered steam in 2002-03.
The custodian handed over Rs 400 crore (Rs 4 billion) in 2001-02 to the income-tax department and another Rs 550 crore (Rs 5.50 billion) in 2002-03.
The total outstandings of the income-tax department are about Rs 3,000 crore (Rs 30 billion) for the period April 1, 1991 to June 6, 1992.
