Friday, July 8, 1977 Asadha 17, 1899 (Saka)
LOK SABHA DEBATES
(Series)
v o l. m
[June 23 to July 4, 1977/Asadha 2 to 13, 1899 (Saks)]
***<**>
Second Session, i*77/i*9J (Saka)
(Vol. I l l contains Nos. 11 to 20)
L O K SABHA SECRETARIAT NEW DELHI CONTENTS
N o. 24, Friday, July S, lyjjlAtadha 17, 1899 (Saka)
C olumns Oral Answers to Questions : V ♦Starred Questions Nos. 385 to 388 ' . . 1— 28
Short Notice Question No. 1 4 ...... 28______36
Written Answers to Questions :
Starred Questions Nos. 389 to 4 0 4 ...... 36— 59
Unstarred Questions Nos. 2873 to 2884, 2886 to 2912 and 2914 to 3 0 1 2 ...... 59— 187
Papers laid on the Table ...... 187— 88
Calling Attention to Matter of Urgent Public Importance—
Reported swindling of crores of rupees by exchanging at the Reserve Bank of India mutilated currency notes meant for destroying . 189— 200
Leave o f Absence from the sittings o f the House 200
Personal Explanatio 1 by Minister o f Railways re. alleged use o f Rail way stationery l>y a private publishing house .... 199— 202
Demands for Grants, 1977-78—
Ministry o f Industry ...... 202— 270
Shri George F e r n a n d e s ...... 204— j 5
Shri K. P. U n n ik ris h n a n ...... 219— 31
Shri Madhu Limaye ...... 231— 51
Shri K. V e n k a t a r a m a n ...... 251— 61
Shri George Mathew ...... 261— 67
Shri Sushil Kumar Dhara . . . . 267— 70
Committee on Private Members’ Bills and Resolutions—
First Report ...... 270— 71 ♦
•The sign + marked above the name o f a Member indicates that the guestion was actually askel on the floor of the House by that Member. Columns
Resolution re. Subversion of Democratic norms by the Former Prime M i n i s t e r ...... 271— 328
Shri Hari Vishnu K am ath ...... 272— 87
Shri Chandrasekhar S i n g h ...... 290— 97
Shri Vasant S a t h e ...... 297— 305
Dr. Subramaniam S w a m y ...... 306— 15
Shri Somnath C h a t t e r j e e ...... 315— 25 LOK SABHA t>EBATES
•I 2
LOK SABHA (d) whether the said three posts have now been filled and if sof by whom, when and how?
Friday, July 8, 1977/Asadha 17, 1898 (SaJca) gvrtrnr :(t) & (^). iftim tjqT % TOTOT ar
The Lok Sabha met at Eleven of the Clock T^T ^ JTT fajjftrT I % ^T- srara %o afU [Mh. S peaker in the Chair] % srfHfacr ORAL ANSWERS TO QUESTIONS 1 1 ™6— 77 ^ trifT %
SHRI KANWAR LAL GUPTA TT ^ I tniT ^T (Delhi Sadar): Sir, we want to con gratulate you ... % f t —tJTl-9-76 1-76— ff5TT*ft question have been le ft out. So, you Mehta was the Acting Chairman of will have to give me a chance to ask the Indian Airlines Corporation, two four, rather than the usual two, posts of Deputy Managing Directors sup^ementaries today; otherwise, it were not filled up; (c) Is it a fact that will je difficult for me to make him another Deputy Managing Director answer my question. along with Mr. Mehta—I believe his name is Mr. Satyamurthy—was not MR. SPEAKER: In the first made a Member of the Board of supplementary, you may have (a), Directors of the Indian Airlines Cor (b) and (c), and in the second supple poration and, therefore, he went yn mentary also you may have (a), (b) leave and then left, and that was one and (c). I have never objected to way of keeping Mr. Satyamurthy also that. out so that Mr. Kehta could remain on the top? PROF. P. G. MAVALANKAR: I am glad you have asked me to do that, Sir. 3T|5T t t o o STTST I may say that I have nothing against this or that individual in the U p R 1-8-73 ^ 31-7-76 cPFrfcr Indian Airlines, because they are all *TFT% fiTTT gm 5 12-4-76 competent officers, but I have raised t t if 7^ I ^80 this matter because it relates to the appointment and conduct of senior- *TT *FT I (w m i* ) SUslsrRf most officials who are involved in *t Sft fH 'M qW JpTT cTff STPT ^ I policy-making and whose decisions and implementation affect the entire work ^ft T^TT j? 3T? ing of the Indian Airlines. That is Terr ^ i srnr iff e r r *rJ f e z t why, the individual posts are im l f ^ * r mVVTT portant. In view of this, may I ask the Minister whether it is a fact 1 % j® for cr^ JT^f^nr that Air Marshal P. C. Lai, when he if was the Chairman of the Indian Air lines, was working very efficiently o o IT^f0 ^Vo ^ PrcftcT ^ and competently, and he brought the fe n 5r*T^ft^r nr°M Indian Airlines to great heights; that ^ fkm 1 fr^zr s m ft r he was haunted out during Emergency somewhere around April, 1976 by (tsf j * * fe=zt $ 3ft f% threatening a CBl inquiry against him; f e r irf rrr It ^ i that, when he left, one of the then Deputy Managing Directors, Mr. ^ f^nrr w t , Mehta, was made Chairman for some months and was confirmed for one *TT vft TOT T^ZX S ^ fcT year as an Acting Chairman in November. 1976; and then Mr. Mehta ^SZE\ *TT ?fk VZZ\ *TT *T f t had seen to it that no post of Deputy feTTT ^ I Managing Director was kept filled so that he, 0n his own, could run the whole show according to his likes and PROF. P. G. MAVALANKAR: Th* dictates? If that is so, it is a serious Minister has replied to my original matter. So, my first question is (a) question that an officer from Air whether it is a fact that Mr. Mehta India, by name Mr. K. G. Appusamy, did act as Acting Chairman when Air is acting temporarily as Chairman of Marshal Lai was haunted out from the Indian Airlines Corporation besides April 1976 to November 1976 and from continuing in Air India—and both of November 1976 until Mr. Mehta these are large Corporations. He has resigned; (b) Why is it that when Mr also mentioned that two Deputy 5 Oral Answers ASADHA 17, 1899 {SAKA) Oral Answers
Managing Directors’ posts are still ^ T T | T T S I W vacant. I would like to know how long the Government will take m TT* faJTT *TtT Ttf^Teft f a q T * ^ 3TT regard to the filling up of the two *f # dr+W 3RT? Rft ^ HT5TT g I posts of Deputy Managing Directors. Secondly when will the new per manent Chairman be installed so that SHRI SONU SINGH PATIL: Will the Indian Airlines can work efficient the hon. Minister clarify whether it ly; and, thirdly, is it a fact that while is indispensable to have one incumbent Mr. Mehta was Chairman of the Indian for the post of Chairman and Manag Airlines Corporation the Corporation ing Director, Indian Airlines and was placing orders directly with the whether it is proper to appoint one ex-Prime Minister’s younger son's person as Chairman and Managing Maruti Aviation Ltd. and was giving Director, because one deals with certain facilities and advantages to policy and the other with execution? the latter with regard to air-craft hangers etc. Was this done by Mr. Mehta, and, was it because of this kind sft : sre cPT *5“JtftPT of dealings with Maruti Aviation Ltd., f i x 3W t tT^r ^ sn?*ft that he was made Chairman, and that no other Deputy Chairman was ft% «r i *tcttt % | fa appointed so that he alone could do 5TTf^ tt tt** tft r whatever he liked? TO *T FT ?t flfrf!T»T S R - V&T % srTt ir * f t srenr T r i ^ r f ’srsr ? ? t
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: W ffa SHRI K. LAKKAPPA: For the last three months, the administration of *r tit Indian Airlines is in a very deplor g ?*rfirSr g«rrc f ?r 1 1 able condition. A lot of indiscipline « has crept in. This is not only in the Mfacft srfgwT Thr^vr : frosft matter of appointment of the Chair man in order to control the administra % *rnrt sft T w r r f # sfr^rt not drag him again to introduce this anti-labour attitude into the Airlines. *r*Tf *f ' j ’ S'T s? crk In this connection may I know ff fa whether Mr, P. C. Lai is the most anti-labour and procapitalist man in f?rr^r ^ fi*r% the Indian Airlines. Please don’t drag «fV *ffa- frs^r nfrr him again and praise him. Secondly, if 5 *tr ftr^TT | ?rfr ^ r I would like to know if there are many posts of Asst. Managers, Traffic Offi t f% cR f qVTT cers, etc., who have been already
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1 if&r fkww: w t 3ft srrrnpr eTfoff fir jpt *rr *rqiMR.. SPEAKER: Mr. Bhattacharyya. SHRI JYOTIRMOY BOSU: Mr. Ravi, there comes a progressive Con- SHRI VAYALAR RAVI: Sir, he gressman. It is a hold-all party. has not answered the second part of my question. I said' that there are ~T~l~ ctnfliTCfi: ~ ~Cfi ~Cfl1i many posts of Asstt. Managers and CfiT~CfT<1" ~ ~~ ~1m<:~ ~ appointment 'bas been made. Will ;.;m'Rf'Tq W'9<:ur 1f> m illf~t ~'i9 Cfi~rjr you look in it and-see that they are 'it ij'11~qT ~ fCfi~ij' 1f> Cfi~w., 1:fi filled early? '. ~r~" fcfln:T~ ~ I
~T ~ Notice is already there. ~hr., €l"r~) g{ ~r,:qh 'it 'fiTfWW Cfi~ ~~T ~ fCfi~;:rSHRI PURUSHOTTAM KAUSHIK: qrwT % ftirj fa m 5 TOT That will be examined. ^ srh TI' SHRI DINESH JOARDER: During q r *rr ^ s i r r the administration of erstwhile Shri P. C. Lai, marshall law ferr qq-r qT ; *rtr was imposed in the Indian Airlines. Many of the benefits that were pre ^rfir f t , eft "Wi °m viously enjoyed by the employees— working hours, shift system etc., were 9R f+drir i ? taken away. Some of the employees were even punished by way of trans fer. In some cases the pay was W=T •TTHT fiWFR TO* reduced. Will those benefits be i'e- : (^) *rtr (^) . stored at the time of the appointment *nr «fr tts N nhfr ip? f^TR *n?ft % -of the new Chairman? Will this aspect be considered by the Administration **• q T^T ^ft fVi 4)1 £ as well as by the Chairman? fN’Tfa ^Tft *nft I
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DR. KARAN SINGH: Hon. i/Iinis- cft^tf -fartift ( ter spoke of a Common Chairman for Air India and Indian Airlines. Is the P fct nSTT^- 1 T T H ft ^ t ^ hon. Minister aware that the operation Trs fc r ^rreft % f t m f t % of Air India and Indian Airlines is •entirely of a different character. Air ^ T P T ^ India functions in a highly competi oJT«rf«TT sft *T!Tt fant tive field. Indian Airlines is more of *r 1 service organisation and virtually is a monopoly organisation. The Head ^ w t q r i f & R quarters of Indian Airlines is in Delhi, whereas the Headquarters of Air In vit^t §rnr »r^t «r^r f^rr thtt i dia is in Bombay. Before taking a vif^i d*f» 'd'l'fTl gT^TT q?t I decision of a common Chairman, will % fircr TTxq ^<+irf S‘T T all these aspects be taken into consi 1 deration? spT g^rr t^rf^r t i t m T f t | c ptt ^t ^ qro ft virrWl, SHRI PURUSHOTTAM KAUSHIK: As I have said, a Committee has been q ^ r t s i t ^ rrW t 1 appointed. The Committee will defi nitely examine all the relevant points « f t : w t ^ •which the hon. Ex-Minister has re ared to. «f>fT ^ 1% ^Tt TTafW ’TTEft % fil^ ^*li{ 5TW ^eiwr ^ t i t w t f t «ft 1 W iff ^ ^ | fti VjjVJ* T O ^ % ftrq n i grwT % fevrfTzt-vq ^ irRift f^rrf q r f w r *t«tt w % ^T«T ^TRTT «TTf ? ftT ^HTT TR T % * 386 . s ft v r t : w r ^«rf ^rr q^, ^ft $ % ft ^
tit i?qT fti : % ft * ^trt g^rf tpn^n^r (^7) wr f a | F ^ r % < 'J’Tj 'jf’T*! ^ *t? ftRT ff'Kif special arrangement for Mr. Rajiv jf a r r TTzn^rir^ n 19 7 3 *r Gandhi. f f 1 s*r% sr^rrar tt<*t sbt^ t % jprrf f*T8T : SRfPTT "HHIT >att^ ’TT, eft «ft Tnft^ Trat % ^ ft* (3) Scrutiny of the passenger SHRI KRISHNA CHANDRA HAR manifest with a view to spot out DER: Sir, I would like to know undesirable passengers if any. from the hon. Minister about the news item that appeared in the Times o1 (4) Guard over the aircraft to India stating that Shri Rajiv Gandhi, ensure that no unauthorised person when he was on duty and reached gains excess. Bombay, he stayed in the Taj Maha! Hotel with the security. I want to (5) Thorough frisking of the hand know whether this expenditure was baggage and of all passengers (in borne by the Indian Airlines or by cluding transit passengers). Shri Rajiv Gandhi himself.
<6) Identification of baggage of passengers near aircraft before «ft vtfvrv : w ^ emplaning. This should be got done 5TTT f+ if) vJ'f+ l with the cooperation of the airline-* oQQ ^TT IHIT I staff.
*ft fftfrvT : ^rr ^ < + r (7) Ensure that precautions re garding cargo, newspapers, etc. arc- Tra- ?rrf fcnr taken ^to prevent foul play or mis ^ n r ^ ^rtr ^*5 chief. This precaution shoud btf taken with the aksistance of the w r srr ^rr f^Rr Indian Airlines. f%qT w r qr ? 15 Oral Answers JULY 8, 1977 Oral Answers 16
(ao whether Shri H. K. Kalia, Re s ft g r o t a * sqnct gional Manager of Allahabad Bank % iff ^n'l (VfH f% W ?r was convicted by the Punjab High q ^ W ’TT | Court on a specific charge;
o q q ^ i *T§ WfNvl jfip ^ 'Jct^ (b) if so, the facts thereof; and m % 5j^> «r, dK^ld ^TPTT TT ^ ^ r r *TT w % ^ (c) the reasons for not taking ac 3 tion against him? ^?TPt 5?sn atr<^TT *T$ I THE MINISTER OF FINANCE AND «ft JWTTH : % HTVTT % q f TPHT REVENUE AND BANKING (SHRI ■a 5 H. M. PATEL): (a) to (c). Ac ■^l^dl j? f% ftr^T Pi 44 % # T cording to Allahabad Bank, Shri TT^ft ^ ^ <1 *387. SHRI DINESH JOARDER: SHRI DINESH JOARDER: Sir, Will the Minister of FINANCE AND on two occasions, he drew loans for REVENUE AND BANKING be pleas house building and deposited that ed to state: amount in the same Branch in a 17 Oral Answers ASADHA 17, 1899 (SAKA) Oral Answers ig
fixed deposit account and drew a THE MINISTER OF FINANCE higher rate of interest. He took the AND REVENUE AND BANKING loan at 3.5 per cent interest but by (SHRI H. M. PATEL): (a) to (e ). depositing the same in a fixed depo A statement is laid on the Table of sit he drew the interest at 9 to 11 the House. per cent. j Statement MR. SPEAKER: I shall not allow this. ‘ You- ' are making a speech The Kohinoor Mills Co Ltd. Bom instead of putting the qi^stion. bay has been a client of the Central Bank of India since 1957 and has SHRI DINESH JOARDER: I been extended credit facilities from want to know whether the man of time to time. The mill company his conduct should be kept in the employs about 8,000 workers. Bank Administration whereas a man of conduct in what is required in Since the latter half of 1974, the the administration of the bank. Whe company has been experiencing ther this man should be allowed to serious financial difficulties. The continue? (Interruptions). Bank has been trying to nurse it back into health and in the course of MR. SPEAKER: There is no this process, it has also used its question there. So, we take up the position to make important changes next question. in the management. As a result of these changes in management effect Loan granted by Central Bank off ed in June, 1976, there has been an India to Kohinoor Mills, Bombay improvement in the financial posi tion of the mills. + •388. SHRI OM FRAKASH These facilities have been granted TYAGI by the Bank with the knowledge of, DR. VASANT KUMAR PAN and authorisation by, its Board of DIT. Directors. The position of the ac Will the Minister of FINANCE count has also been communicated, AND REVENUE AND BANKING from time to time, to the Reserve be pleased to state: Bank of India for the purpose of cre dit authorisation. (a) whether Centra] Bank of India had given a loan of Rs. 25 crores to Certain allegations have however the Kohinoor Mills Company Limit, been made against the Bank in re ed, Bombay without the prior sanc gard to these facilities to the com tion of the Bank’s Board and against pany. Government of India had the rules of the Reserve Bank; requested the Reserve Bank of India to look into the matter. A prelimi (b) when was the loan given and nary report has now been received bow muph amount thereof has been from the Reserve Bank of India. ;*3 covered; As regards the details of the ac (c) the names of the officers who count in accordance with the prac violated the rules; tices and usages customary among bankers and also in conformity with (d) the action taken against the section 13(1) of the Banking Com officers guilty of negligence; and panies (Acquisition & Transfer of Undertakings) Act, 197ft any infor (e) the steps which are being mation relating to the affairs of taken to realise the amount? constituents is not to be divulged. 39 Oral AnswersJULY 8 , 1977 Oral Answers 20
of, and authorisation by, its Board of Directors. The question of the *T5T 5TPTTT |STr, W t ^ I tTT account has also been communicated f o r Tf 5ppt to Tfft t. from time to time, to the Re serve Bank of India for the purpose «i(r»> »rt?r-*ft*r ^Trr ^ 1 f*rrr men4! of credit authorisation.” %ft*nra *r Tft *rr«rr, qsrr srTrr ^ i t tot firqr t ? ?m sttit *r Tfr That means the Reserve Bank hafi ,ft> ^ftf^jr f*T^ 3fr *ft*i %5TT T^T been kept informed. The position is ^Tf Ttr Tt ?TTRfiT % % r Tfr 1 1 ?rnr ?t this account has been going on since 1956. The Kohinoor Mills is a public w t sttit t T f tft t ^t ^— limited company incorporated in 1896 and has three cotton textile manu facturing units in Bombay with an “ The position of the account has installed spindle capacity of 1.30 lakh also been communicated, from time and I960 looms. The average turn to time, to the Reserve Bank of over of the mill was between 13 and India for the purpose of credit autho 16 crores upto 1974. The average la risation.” bour force is . 8000 workers. The Kapadia group are in control by hold ?Tt*r.T *TfrTT, t Tf srRrrct^TT ing 57 per cent of the share capital ’TlfrTT g fT 90 5Trar WTT TT if T*R directly including shares held through Tt Ki % fTflT I 4 5T^?|TT, badla transactions by Magan Lai Chhagan Lai Pvt. Ltd., the Investment 1977 Tt ft^TT Tt T5T 'JW if Company of Kapadias. The affairs of ^ Tt >rrai 4. 90 t ^ ? ft »rf the mill were satisfactory upto mid 1974 when the mill started incurring *ft i Tts % It t> far* frrr losse5 which progressively increased fr v n $*t Tnrrf % Ttf t ^ i both due to inept management and the 7- 11-1975 Tt far fort tr % general worsening of the fortunes of the textile industry. The year 1974 f^rarff ?t f r t> T *t? ^rrar sft closed with a loss of Rs. 32 lakhs for fr^r t r « t % * ferr sir# i 19 3RT*t, the mill. From January, 1975 to March 1976 % 5 >Tf, 1977 tt 11 T d r 1977, i.e., for the 27 months the mills incurred a loss of Rs. 12.38 crores % fa n 1 which were financed entirely f ’ om in crease in bank borrowings. Jt is this %TT 5PR" HT ^ W which seems to be agitating the Hon’ble tir5'fi It vptritt Tt ttT tt forr Members. t t Tt *TTTfr % frrr ^r°r ^tt ^ tt W, ?ft ftSTT TT WflfTT TflT T FT if Losses by a manufacturing unit are reflected in erosion of margins avail TT % ^*nTI^ THT l>1 TOT ^ f ll able to banks on current assets and TfT, TT % fr w TRTTTft continued losses result in the current TOT Tft ^?t ? *Tfe Ttf TFTTfft liabilities and even the secured short term loans exceeding the current as Tt ^ Tt Tf TOT % ? sets. This is precisely what has SHRI H. M. PATBL: Sir, I will give happened in the case of Kohinoor Mills whatever information I can to satis Ltd. The mill maintains a cash fy the hon’ble Member. First, it has credit account with the Central Bank been mentioned in the statement it of India. The present account was self: started on December 15. 1976. Upto December 15, 1976 the Mill had a cash “These facilities have been gran credit account which showed a total ted by the Bank with the knowledge drawal of Rs. 15.96 crores. From 16th 21 Oral Answers ASADHA 17, 1899 (SAKA) Oral Answers
December 1976 a new account was and it is the view of the Bank that opened. The drawal in the new ac since July 1976 the mill is being run count upto 31st May 1977 is Rs. 1.62 by the newly constituted professional crores. Excluding about 1 crore from management. (Interruptions). this on account of certain adjustments the total outstanding is Rs. 16.44 cro An HON. MEMBER: It is a state res as against the value of stocks less ment. It is not a reply. margin of Rs. 5.89 crores. The account thus shows a deficit as on 31st May SHRI H. M. PATEL: If you kindly 1977 of roughly Rs. 10.5 crores in see the question.. (Interruptions). •current assets. Statement No. I and MR. SPEAKER: First you will have II show the account of Kohinoor Mills to sit down now. Anybody can Ltd., with the Central Bank of India. I do not have more figures. If more not get up and shout (Interruptions). If everybody does that will there be figures are required, I can give them. any order in this House? You will have to ask when your chance comes. According to the Bank, it constantly monitored the progressive decline in SHRI H. M. PATEL; The question the condition of Kohinoor Mills from is put in such a form that it makes January 1975 onwards. It sought to bring about management changes to it necessary for me to give a long ex planation. The question reads “Whe improve the situation. Thus, in Sep ther the Central Bank of India had tember 1975 at the instance of the Bank, the term of Shri Neemji Bhai made a loan of Rs. 25 crores to the Kohinoor Mills.” The answer would Kapadia, Managing Director, was not be—if I interpret it strictly—‘No*. But renewed. Soon thereafter the gua rantee of Magan Lai Chhagan Lai Pvt. that will not be correct. (Interrup tions) . — Limited was obtained. This Company is the investment company of Kapa- dias who were the persons in control MR. SPEAKER; If you are interrupt of Kohinoor Mills Ltd., till June 1976L ing like this, you will not get any answer )
In November 1975, the Tata Econo SHRI H. M. PATEL: I have already mic Consultancy Services were engag said that it is a running account. This ed by the Bank for carrying out a de is what I wanted to say. So, there is tailed techno-study of the company. no question of giving a loan of a large sum as Rs. 25 crores at any one point SHRI JYOTIRMOY BOSU: Who re of time. commended? SHRI JYOTIRMOY BOSU; What is SHRI H. M. PATEL: The Tata Con the present outstanding? sultant recommended. The report of SHRI H. M. PATEL; I will tell you. the consultant recommended that lor The present oustanding is Rs. 16.45 retrieval of company’s fortunes a crores. In addition to that there is change in the management was re Rs. 3.5 crores on Bills. These are quired. The bank was able to use its self-liquidating. claim over 35 per cent of the share capital as a handle to bring about changes in management because this (Interruptions' holding plus the 15 per cent holding MR. SPEAKER; Mr. Tyagi. Will you by the LIC gave the Central Bank vot kindly put your second question? ing control over 50 per cent of the share capital. The Bank was able to pressurise the management into mak ing far reaching management changes *rr ^ qfr m m $ i 23 Oral Answers JULY 8, 1977 Oral Answers
THE PRIME MINISTER (SHRI DR. VASANT KUMAR PANDIT: MORARJI DESAI); These are contra The Finance Minister said that RBI dictory attitudes. When details are authorisation was taken and the Board given, they say full details are not of Directors also were consulted. This given. When they are furnished, they is a half truth, suppressio veri. May I say it is a round-about reply. What know whether around 19th January -is this? I do not know. 1976 the RBI wrote to the Central Bank of India in the following man ner:—
t f% 'Tfr^TT % t t “ in respect of your bank’s ap plication to us for authorising the additional credit limits, sanctioned by ^ ^ % 2 5 ’Tut the bank in favour of the above com % w r o fcnr |tt ^ pany. In this connection, we observe that your bank has already allowed % ^TTUT ^ the authorised credit limits to the % ^lrrTR 2 5 rf^T % ^TJT extent of the company of Rs. 4.75 m | ?ftx fr^r# t t fafsr crores, with your bank to the extent of Rs. 10.10 crores without obtaining qr fafsr ten f ftr fsprr sryifd % our prior authorisation under the ^TT TfT | ?ir+H ^ ^TT 331 Credit Authorisation Scheme. Al T?T ? though your bank had adduced cer tain reasons for the above, we have to advise that your bank shou!4 SHRI H. M. PATEL: Sir, although avoid such violations of the scheme it does not arise from this question it in future.” is true that Mr. Sudhir Kapadia is believed to have contributed some In view of this, will the hon. minister shares in Maruti. Mr. Sudhir Xapadia tell the House whether proper authori is not necessary a person whose repu sation as required by the RBI rules tation in these matters has been sa was obtained from time to time? Our tisfactory. But there is also another information is that RBI authorisation company in which he has been in and taking into confidence the Board volved, which is also causing concern of Directors were done only up to the to us. limit of Rs. 4.75 crores. Thereafter, the borrowings increased tox Rs. 25 (Interruptions) crores and the subsequent borrowings were without proper authorisation of As far as the question of pressure is the RBI and only being ratified by 'the concerned, whether there was any pre- Board of Directors but the order of the sure at that time or not—I cannot gay Board of Directors was not taken. Is because I was not here then. Here was it true? a mill which had 3OO0 workers and It was a very sound concern. A de SHRI H. M. PATEL: The hon. mem cision was taken to nurse it and re ber evidently has access to more reli vive it and make it a profitable unit able information than myself. My as it was before. It was with this sources are the RBI and Central Bank. object that the loans were given. I am not *n a position to say whether SHRI JYOTIRMOY BOSU: You there was any other pressure or not. should extend your sources of infor (Interruptions). I am not defending mation. anything. I am trying to give you the facts as they are known to me. If I SHRI H. M. PATEL; Thank you; I give you facts which you do not like, wiii take your advice. Presumbly you you should not say I am defending are meaning that I should come to you something. for information! 25 Oral Answers ASADHA 17, 1899 (SAKA) Oral Answers 26
The present regulations regarding been taken. So there is no question credit authorisation are that where the of the reaction of the Reserve Bank. aggregate financial assistance from the banking system to a party exceeds SHRI JYOTIRMOY BOSU; But you Rs. 2 crores, credit authorisation from said no formal sanction has been ob the Reserve Bank is required. For tained? every subsequent increase, the prior (Interruptions) authorisation of the RBI is necessary. Though the Central Bank has not in SHRI H. M. PATEL: When I have any formal manner obtained any cre said that the authorisation has been dit authorisation over and above the taken I mean it has been taken. limit of Rs. 4.75 lakhs it has been keep SHRI SHYAMNANDAN MISHRA: ing the Reserve Bank informed of The bon. Minister was pleased to say developments in the account and the that when they exceeded the limit of position of the outstandings therein. Rs. 4.75 crores, they did hold consulta There have also been meetings between tions with the officials of the fte*erve the Central Bank officials and the Re Bank of India although there was no serve Bank to discuss the whole ques proper authorisation. Now, the ques tion. We have now asked the Reserve tion is when these consultations took Bank to go into the entire question place with the Reserve Bank of India and to submit a report about the situa and their officials, why did not the tion of this account of this textile com Reserve Bank take objection to this? pany. The Reserve Bank has not yet Why did they not act against this? been able to complete its investigation. Now, they say that the Reserve Bank But when they complete it, we shall of India would go into the matter. go into the matter. When they were seized of that matter even informally, why did they not SHRI K. MALLANNA; In para 3 of take action in this matter when that the statement it is said: limit was being exceeded? SHRI H. M. pATEL: I can only tell “These facilities have been grant the hon. Member that these are pre ed by the Bank with the knowledge cisely the questions which I am now of, and authorisation by, its Board asking the Reserve Bank. That is why of Directors. The position of the I have asked them to go into it and account has also been communicat give me the explanation. But I must ed from time to time, to the Re at this stage, tell you what the position serve Bank of India for the purpose is. of credit authorisation.” SHRI SHYAMNANDAN MISHRA: There is a clear case of dereliction on The question is whether the Central the part of the Reserve Bank because Bank of India had given a loan of the Reserve Bank of £ndia was kept Rs. 25 crores to the Kohinoor Mills informed by th^ bank concerned. Company Limited Bombay, without the prior sanction of the Bank’s Board SHRI MORARJI DESAI: There are and against the rules of the Reserve seven such complaints. Therefore, the Bank. May I know from the hon. Reserve Bank’s Governor has gone arid Minister whether the sanction of loan a new man has been put in. is in contravention of the rules of the Reserve Bank of India, and what is SHRI VINODBHAI B. SHETH: I the reaction of the Reserve Bank. Would like to ask one question. (In terruptions) '
«■ SHRI H. M. PATEL: Sir, I nave al MR. SPEAKER; Order now* It is ready replied to this question. The impossible to manage. This laughing authorisation of the Reserve Bank has ond shouting is not going to help. It 27 Oral Answers JULY 8, 1977 Oral Answers
will bring down the dignity of the this matter? In the circumstances, will House. By this you think you are the hon. Prime Minister and the Fi doing a great thing, but the dignity nance Minister think over it and insti of the House is being brought down. tute a probe by persons who are un I am calling one by one. You have connected with this affair altogether? already taken 40 minutes on this ques tion. You still want to get up and SHRI MORARJI DESAI: Govern ask questions. The answer may not ment is very conscious of all these be satisfactory, but then there are things, and is trying to see that all other methods. You can have a dis these things are changed in a proper cussion on this some day. But I may manner. tell you that this is bringing down the dignity of the House. It is not proper. One by one you can ask ques Short Notice Question tions. If you are not satisfied, you Deposits Received by Allahaba^ Bank can have a discussion or something From Kangra Cooperative Bank like that later on. But this is not good. Limited, Himachal Pradesh
SHRI VINODBHAI B. SHETH; I S.N.Q. 14. SHRI SATISH AGAR- would like to know whether the WAL: Reserve Bank or Central Bank had SHRI KANWAR LAL taken any hypothecation or security GUPTA: from that Company and what are the findings of the Tata Consultancy Ser vice? Will the Mjinister of FINANCE AND REVENUE AND BANKING be SHRI H. M. PATEL; I have already pleased to state: said that the account may be said to be overdrawn to the extent of Rs. 10-1/2 (a) whether Allahabad Bank, Par crores in current assets because the liament Street, New Delhi received current assets of the Mills etc. are up Deposits of Rs. 6.45 crores from Kang- to Rs. 5.89 crores. ra Co-operative Bank Ltd., Himachal MR SPEAKER: Rs. 10-1/2 crores are Pradesh, between December, 1976 and unsecured? March, 1977 at the interest rate of SHRI H. M. PATEL: Yes. 17 i per cent Per annum against the stipulated rate of interest of 12.£ per SHRI JYOTIRMOY BOSU: The hon. cent fixed by R.B.I.; Finance Minister and the hon. Prime Minister said that the matter had been (b) whether more than a lakhs of entrusted to the Reserve Bank: of rupees was paid as brokerage for get India to enquire and enlighten the new ting loans in violation of Reserve 'Government. In that context, may I Bank Rules; ask the hon. Finance Minister to tell (c) whether Allahabad Bank gave this House clearly whether the present crores of rupees to Punjab and Sindh Reserve Bank Governor Mr. Narasinv Bank Ltd., New Delhi during the last ham. till recently was the Secretary six months; if so, the details thereof; of the Banking Department? Is it not a ffcct that In every Board of (d) whether the outstanding ba the nationalized bank, there is one lance against Punjab and Sindh Bank representative from the Reserve Bank as on 30th May, 1977 was Rs. 3.44 of India, and one representative from crores against which receipts for only the Department of Banking; and in Rs. 95 lakhs were available with A l view of that the Governor of the lahabad Bank on 30th May, 1977; and Reserve Bank and the Secretary (Banking) and their predecessors, in (e) if so, what action has been order to protect their own skins, will taken against the officers who were be hiding, mote than guiding us in responsible for keeping the unac 29 Oral Answers ASADHA 17, 1899 ( SAKA) Oral Answers 30 counted money of Rs. 2.49 crores on by the Bank in the light of the find 30th May, 1977? ings of the Investigating Officer.
SHRI SATISH AGARWAL: Certain THE MINISTER OF FINANCE very serious questions arise out of AND REVENUE AND BANKING the answer laid on the Table of the (SHRI H. M, PATEL): (a) to (e). House. Firstly, the Finance Minister A statement is laid on the Table ot has taken cover under the Reserve the House. Bank’s directive that no maximum ceiling limit was fixed on the interest Statement rates payable to the lending banks. I would now like to draw the attention (a) The Allahabad Bank has repor of the Finance Minister to a circular ted that its Parliament Street, New of the Allahabad Bank itself, i.e. issued Delhi Branch obtained deposits total from its regional office at 17 Parlia ling Rs. 6.45 crores from the Kangra ment Street, New Delhi on 3-12-1976. Central Co-operative Bank Ltd., at This Circular says: different points of tlme between De ‘‘Previously, the branch managers cember 1976 and March 1977. These were given discretion vide head deposits were for a period of one year office circular No. 15/3^49 of and the rate of interest agreed to be 1-11-76 to allow interest at 13 per paid was 174 per cent p.a. cent per annum on deposits received from banking institutions/coopera Reserve Bank's directive on interest tive banks for a period of 15 to 60 rates on deposits is not binding in days and at 13£ per cent per an respect of “deposits made by a bank num on those taken for a period of ing institution or a co-operative bank not less than 6 months. other than a Land Development Bank.” However, according to the guidelines This was the previous position. They issued by the Indian Banks Association amended it. The circular says: to its member banks, the interest rate on deposits for periods over 60 “The branches have now been days should not exceed 13* per annum. given discretion to allow interest on deposits received from other bank (b) The Allahabad Bank reports ing institutions/cooperative banks that it has paid a brokerage of Rs. for 61 days and over, at 13£ per 1.22 lakhs to two firms for securing cent per annum, provided such de the above mentioned deposits. Accord posits remain with us beyond ing to the Bank this is not in any 31-12-76. way a violation of the Reserve Bank's directive. I would like to ask the Finance Minis ter as to what was the urgency for (c) and (d). The Allahabad Bank reports that its Parliament Street, New the Allahabad Bank to borrow Rs. Delhi Branch has at present deposits 6.45 crores from the Kangra Co of Rs. 3.44 crores with the Punjab & operative Bank Ltd., Himachal Pra Sind Bank Ltd., supported by deposits desh at such a high rate of interest as receipts. The Bank has not yet clari 17$ per cent, and that too by paying fied the position as it stood on 30th a brokerage of Rs. 1.22 lakhs against May 1977. They have been asked to Reserve Bank rules and the head office do so. The Bank has, however, infor circular. med that they have deputed a senior officer of the Bank to go into the mat SHRI H. M. PATEL: The hon. ter. Member says that I take cover behind the Reserve Bank’s directive. I am (e) The question of taking action taking cover behind nothing. I am against any officer will be considered giving them facts; and if you ask a 31 Oral Answers JULY 8, 1977 Oral Answers 32
•quest ion, it is my duty to give you the brokers, whether they had any deal lects as they stand. It is very neces ings with this particular bank prior sary to stick to the question. It asks: to this, what brokerage was. P&id to them and what is the provision with (a) whether Allahabad Bank, regard to brokerage. Since the Parliament Street, New Delhi re Allahabad Bank has reported that ceived deposits of Rs. 8.45 crores there is no violation of the rules, I from Kangra Co-operative Bank would like to know whether payment Ltd., Himachal Pradesh, between of Rs. 1.22 lakhs as brokerage by a December 1976 and March 1977 at Bank is permissible. the interest rate of 17J per cent per ft SHRI H. M. PATEL: I would again annum against the stipulated rate of request the hon. Member that he interest of 12£ per cent fixed by might be more accurate. I have never R.B.I.” said that there has been no violation What is my reply? I have said: of the rules. I have merely answered the question whether more than one “ (a) The Allahabad Bank has re lakh of rupees was Paid as brokerage ported that its Parliament Street, for getting loans in violation of the New Delhi Branch obtained de Reserve Bank Rules. I have stated in posits totalling Rs. 6.45 crores from paragraph (b): the Kangra Central Co-operative Bank Ltd., at different points of time “The Allahabad Bank reports that -between December 1976 and March it has paid a brokerage of Rs. 1.22 1977. These deposits were for a lakhs to two firms for securing the period of one year and the rate of above mentioned deposits. Accord interest agreed to be paid was 1?* ing to the Bank this is not in any per cent p.a.” way a violation of the Reserve Bank’s directive.” 1 confirm it. Again my reply says: Then, if you kindly look at part (e), “Reserve Bank's .directive on in I have stated: terest rates on deposits is not bind ing in respect of “deposits made by “The question of taking action a banking institution or a co-opera- against any officer will be consider - tive bank other than a Land Deve- ed by the Bank in the light of the . lopment Bank.” findings of the Investigating Officer.” 'This is merely giving you the fac The main office of the Allahabad Bank tual information. Again my reply has appointed, rather deputed, a senior says: officer to go into the whole of this case. When the investigation is com —' “However, according to the guide pleted and when full facts become lines issued bv the Indian Banks available, we shall know what action ‘ “ Association to its member banks, the is to be taken. In the mean time, I -‘’■ interest rate on deposits for periods have given you all the facts that I •r- over 60 days should not exceed have. *■ 13i per cent per annum.”
Wow I have given the factual position. SHRI KANWAR LAL GUPTA: The Allahabad Bank has been put to a loss Does it mean that I have taken caver behind it? What further action of about Rs. 42 lakhs on account^ of excessive payment of interest. Some should be taken in regard to anything that is improper in this transaction, we brokerage was also paid. Besides this, will certainly take afterwards. an interest of Rs. 6.45 crores was cre dited in the current account of the ^ SHRI SAXISH AGARWAL: I would Kangra Central Co-operative Bank 'like to know the credentials of the every month and interest on this in- 33 Oral Answers ASADHA 17, 1899 (SAKA) Oral Answers 34
* terest was also paid. This is the big commission paid to the brokers, in gest bungling and it is a very serious accordance with the rules? Since the matter. Of course, it is a fraud. Since Regional Manager, who was responsi even senior officials are involved, I ble for this shady deal, has now been want an independent enquiry other promoted, is it not in the fitness of than by bank officers, say by the CBl, things that those officers against whom to go into it and pin-point the res these allegations are being made are ponsibility of the officers who are res suspended while the enquiry is going ponsible for it. May I know whether on? Otherwise, they will prejudice after making enquiries the Minister the enquiry. will lay on the Table of the House the SHRI H. M. PATEL: So, far as this report of that enquiry? particular Bank manager is concerned, he has been transferred already. SHRI H. M. PATEL: As I have al SHRIMATI PARVATHI KRISH- ready said, an enquiry is being made NAN: Transferred on promotion. at the present moment by the Allaha bad Bank itself. When that report jp SHRI H. M. PATEL: My information received, we will consider what fur is that he has not been promoted, he ther enquiry is necessary and it will has merely been transferred. If it is, be made. I shall certainly be happy I shall confirm it. I am only telling you: to place all the results of the report what my present information- is. on the Table of the House. So far as the brokers are concerned, I have no definite information about them, but they were not new brokers ^TfcTT g ^ft *rri ^tf TO brought into existence. The names of the brokers’ firms are: Messrs. Indian R e a l Estate & Investment Bureau, No.. 'f'td 3TTt q^t t ^ 7, Jantar Mantar Road, New Delhi— they have many branches—and Messrs 3ft 5TT^ft dd+l Ram Prasad Gianv.phand & Co. I do* not have their address. The former TO? ^TT «TT ? H?ft iTft^T was paid Rs. 78,676 as brokerage, and ^TVt ^ ^ ? the latter was paid Rs. 43,654. Can the Minister deny it? A question was raised about the Manager having been transferred. He SHRI H. M. PATEL: I do not know was given a promotion not now, but anything about it. So, there is no ques in January, 1977, and he has been now tion of my denying it or affirming it. transferred from whatever position he was holding to the same position else SHRIMATI PARVATHI KRISH- where. NAN; Is the hon. Minister aware of SHRI YADVENDRA DUTT; May I the fact that this particular firm of know whether this firm which has brokers appeared on the scene just given its address as No. 7, Jantar a few days prior to this deal and then Mantar Road, had only a capital of got a commission? I would also like Rs. 300 before this transaction which t0 know the credentials of this firm of gave it this huge commission and that brokers. For how long has the Allaha it was formed iust a week before the bad Bank been dealing with them? transaction? Have these brokers also collected money from the Kangra Central Co SHRI H. M. PATEL: I take the in operative Bank? Have the Allahabad formation. I shall enquire. I can Bank deducted income-tax from the only give the information that I have- 1341 L S —2 35 Oral Answers JULY 8, 197? Written Answers 36
sft f a • W t 'Sft ^ the whole question of enquiring into the working of these banks so that ft? 3r 1977 their original objectives are fulfilled. ^ fl^T. ?rr4^ fVqT ipTT, ^ ^ d ^ F l ^ *rf, SHRI H. M. PATEL; This is a good suggestion and certainly we will consi ^TT *»T f^TT TOT I der it. TOlt % TT SHRI VAYALAR RAVI: First, ^ T T ^— °wT q*iM % please look into it whether this ad ftrtr irr^fhT *r*ft sft * rt ^ t dress, 7, Jantar Manta^ Road is cor *M r t*r f% *m ^r jtw ^ rect or not because 7, Jantar Mantar Road is the office of the Janta Party. % fe^TT *TR, S F W ^ 8% sr 1 ? r m-r ^ «rftd4>r{ The whole dealings of these banks #? seem to be very fishy. Will you kind ly look into the dealings of these banks? Will you please have a thorough check? The bon. Minister SHRI H. M. PATEL: There is no has said that a senior officer will look ■question of justifying the promotion into it. These are all one class and or otherwise. I have given you the one group of officers. The other facts. When the enquiry is completed, course left is the Reserve Bank. Will we shall know the details, and w e shall you ask the Reserve Bank to enquire decide upon the steps to be taken. into it? “However strong the feelings may be, I think it is necessary to proceed SHRI H. M. PATEL: The enquiry ■against bank officers as well as others will be thorough. The investigation according to the procedures that are is being made by a senior officer in laid down. They have certain rights, order to collect full data and then we and enquiries must be made according will decide what further action will be to the rules. That will be done. taken.
So far as hon. Member’s reference PROF. P. G. MAVALANKAR: From to 7, Jantar Mantar Road is concerned, the answers given so far I can say that evidently, he is ill-informed about the Finance Minister is not replying that. He does not know that at that in a direct manner. I am not saying place a large number of small busi that he is replying in a roundabout ness houses are there. So, such a ^manner. Certainly the information kind of cheap jibes does not give cre that he has given by way of reply dence to the hon. Member. falls short of the actual information that seems to be available with some WRITTEN ANSWERS TO people. It may not be available to QUESTIONS liim. Therefore, I do not want to be uncharitable to him and the Govern Prices of Onion ment. These nationalised banks are *389. SHRI LAHANU SINDWA: really meant for helping the economi SHRIMATI AHILYA P. cally poor socially backward sections of the society. But we find that parti RANGNEKAR: cularly during the Emergency, these Will the Minister of COMMERCE tanks were used as agencies for all AND CIVIL SUPPLIES AND CO kinds of nepotism and corruption. OPERATION be pleased to state; Since the Prime Minister is here. I (a) whether the price of onion is ask whether the Finance Minister and falling which is affecting onion grow, the hon. Prime Minister will go into ers; 3 7 Written Answers ASADHA 17, 1899 (SAKA) Written Answers 3$
(b) the present price level of onion; Institutional credit in the Private <9nd Sector and Heavy Industrial Sector
(c) whether Government contem *391. SHRI K. A. RAJAN: Will the plate to fix the minimum prices of Minister of FINANCE AND REVENUE onion taking into account the costs of AND BANKING be pleased to state: cultivation of agriculture products? (a) whether Government are THE MINISTER OF COMMERCE aware that institutional credit is flow AND CIVIL SUPPLIES AND CO ing the private sector and heavy in OPERATION (SHRI MOHAN DHA- dustrial Isector adversely affecting JlIA): (a) No, Sir. small scale industries and public sec tor industries; and (b) According t0 the latest data (b) whether Government propose to available, as on 24-6-1977, the retail take steps to make more institutional prices of onions at a few selected finance available to small scale indus centres were as under: — tries in Kerala where it has a large employment potential? (Rs. per kg.) Madras Calcutta Bombay Nasik Delhi THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI 2.10 1.50 1.25 1.00 1.20 H. M. PATEL); (a) and (b). The Public Financial Institutions endea (c) No, Sir. However constant vour to ensure that the availability of efforts are made to secure the interests credit is not an impediment to the o f the producers alongwith the consu implementation of any proposal which mers. is technically sound, financially viable and economically desireable. The all India share of assistance to small scale industry from IDBI has increased from 3.4 per cent between 1964—70 to 26 per cent in 1970—75. Development Bank for Small Scale Industries Financial support for term credit to small scale industry in Kerala is *390. SHRI K. MALLANNA: Will provided by the Kerala State Finan the Minister of FINANCE AND cial Corporation and resource support REVENUE AND BANKING be pleas- >((b) if so, the details thereof? Financial support to the Public sec tor was being extended entirely THE MINISTER OF FINANCE AND through the budget. However recent REVENUE AND BANKING (SHRI ly the public financial institutions have H. M. PATEL): (a) No, Sir. also started assisting the public sector projects. During the last three years (b) Does not arise. 1974-75, 1975-76 and 1976-77 the 39 Written Answers JULY 8, 1977 Written Answers 40 assistance provided to public sector projects is as follows: —
(Rs. in crores)
Amount sanctioned
1974-75 1975-76 1976-77
I ...... 59 4 71*7 713* (July—June) (l8 5) (l6-x) (I7°> I 2 12 0 II 6 (April—-March) (3 9) (23 4) (U-o)
% I.F.C.I.: Industrial Finance Corporation of India. •July 1976—March 1977- Figures in brackets indicate per- whether the price of vanaspati centage to the total assistance of the ghf w“ ^ 6'50T,per, ^ n respective institutions in the year. f arly has «one t0 10 00 Per kg. in 1977;
N.B. (i) The State Financial Cor (b) the particular reasons therefor porations grant rupee loans upto a and whether the prices of raw mate maximum of Rs. 30 lakhs to concerns rial used in the manufacture of vanas- in the Corporate and Cooperative sec pati ghee have also risen in the same tors whose share capital and reserves proportion; do not exceed Rs. 1.00 crore. The all- (c) whether Government have no India institutions consider requests check over the mode or extent of pro from industrial concerns for grant of duction of vanaspati ghee by the assistance in excess of Rs. 30.00 lakhs. manufacturers and the manufactur As such, the small scale units do not, ers try to create a shortage in the normally, come under the purview of market to fetch more price; and the operations of the above institutions for direct assistance. (d) the reaction of Government thereto an£ whether some proposal to (ii) in respect of refinance of in take over the manufacture and dis dustrial loans the I.D.B.I. refinances tribution of vanaspati ghee is under loans by other institutions and its consideration of Government to check assistance to small scale units is thus rise in prices of this essential com indirect by way of refinance. modity and if so, the salient features of the proposal? THE MINISTER OF COMMERCE Rise in the price of Vanaspati Ghee AND CIVIL SUPPLIES AND CO OPERATION (SHRI MOHAN DHA •392. SHRI ANANT DAVE: RIA) : (a) The price of one tin of 16.5 kg. of vanaspati including excise SHRI SHANKERSINHJI duty was around Rs. 90—100 early in VAGHELA: 1976; the price was hovering around Will the Minister of COMMERCE Rs. 166— 168 early in May, 1977 and AND CIVIL SUPPLIES AND CO from mid-May, It has been brought OPERATION be pleased to state: down to Rs. 158. 43 Written Answers )TASADHA 17, 1899 (SAKA) Written Answers 42
(b) Prices of vanaspati, in the ope wf % V^K, ^ 1976 *T WS ration of market forces, fluctuate in pF*T1\ TOT «TT J6dr 1 v / (c) The average monthly production Uncertainty in S.T.C., N.T.C. and -of vanaspati ranges between 45,000— M.M.T.C. 50,000 tonnes. The Directorate of Vanaspati monitors production levels *394. SHRI D. D. DESAI: Will the o f the vanaspati units and checks the Minister of COMMERCE AND CIVIL usage of different oils in the manufac SUPPLIES AND COOPERATION be ture of the product. pleased to state; (a) whether he has seen the report (d) There is no proposal at present in the Financial Express of June 16, to take over the manufacture and dis 1977 to the effect that uncertainty tribution of vanaspati. about their future is haunting the top brass in the State Trading Corpora tion, the National Textile Corporation and the Minerals and Metals Trading Corporation; and gun (b) if so, his reaction thereto? ♦ 393. wteT t o THE MINISTER OF COMMERCE *T?ft AND CIVIL SUPPLIES AND CO «inH ^ I*0!! Pf I OPERATION (SHRI MOHAN DHA RIA): (a) Yes, Sir. (^7) Pf% ^ (b) There is no reason for the offi gT g^rirff ^f|v*r f^iT cials of STC, NTC and MMTC to feel uncertain about their future. While # fceRt sir 5TTRT f w ; enquiries have been initiated against certain officers against whom com (^) w ^rpft plaints of corruption or serious mal ft? w * % ^ practices have been received, the num ber of such officers is very small and fkm «n; ?fk Government would follow due process in such cases. The Government's (*r) ft, 4,000 employees belonging to the sub insurance business and *n order to sidiaries of the General Insurance bring uniformity in the scales of pay, Corporation; allowances and other conditions of service of Development Staff, which (b) if so, the reasons therefor; before nationalisation differed from company to company. The Govern (c) whether this decision was taken ment while framing the terms and during the period of emergency with conditions of service of development out consulting the staff; staff took into account the recom mendations of the Mathrani Commit (d) whether these employees have tee and the G.I.C., which had held dis protested against this unilateral move cussions with the Field Staff Associa of the management; and tions. (e) if so, reaction of Government thereto? The Government has received re presentations against the various pro THE MINISTER OF FINANCE AND visions of the Scheme including those REVENUE AND BANKING (SHRI providing for reduction in emoluments, H. M. PATEL: (a) to (e). Under the and termination of service under cer powers conferred on the Central Gov tain circumstances and these are ernment by the General Insurance under consideration. Business (Nationalisation) Act, 1972, the General Insurance (Rationalisa tion of Pay Scales and other Condi tions of Service of Development Staff) a m r r n f t j t t t fa ir w n j Scheme, 1976 was published on 29th n f tnmfiT April, 1976 and the same came into force with effect from 1st May, 1976. The terms and conditions of service * 3 9 6 . OH * tT : w r of Development Staff as provided in p t the Scheme, inter alia, link their re f«m TTirp* dtr T« 4 » muneration with the premium income. f'TT f% : Every Development Staff (Inspector Grade I or Inspector Grade II) after (^>) otimr< *1^ a*rr categorisation, is required to operate I w r f 25- within a stipulated cost ratio of 7 per cent, 8 per cent and 10 per cent (7 3JJT, 1 9 7 5 1 9 7 7 5RT per cent operatihg in Metropolitan ^ STSffa % fUTPWHtff if cities, 8 per cent operating at ‘A* Class fcf? r m f % fa rr T rftr % cities other than Metropolitan cities (B— 1 and ®—2 Class cities) and 10 if W ^TT ^«(T WTVW Per cent operating at all other centres fair respectively). The emoluments in cluding basic pay of a development (^■) ^rif It jptt staff operating at a cost tatio, which exceeds stipulate^ limit, shall be so oifiMR 7 fVl'fl-f+d'fl wrriftr reduced as to keep his cost within the stipulated limit. Where the emolu ments of a development staff are re duced for three consecutive years, the services of such persons shall be liable fr^o tjro qfn) : (^>) sftc to be terminated. (m) . TT^f # 1 - 1 - 1 9 7 5 %
The said Scheme was notified conse ^fr vP m tfr srfisra* f t | i wftnj, (n ) *TRcT ffWPC * ^ STTCfrT TPS^T spfro ^ ifVntfi ri, ^>T-(r|yI^u| . 1976—77 *U<.*) t (^>) sn*F 1 9 7 7 -7 8 % ^F9FET *f STTCRR ctt^t 5Hra ^ ^nferf % v r it I' faq w p t % fin* jftfe^r ^TT ^+'5H ’H'RsI^ ^TTTcfnT ?TOTT frcr 3tt t| | 1 qT f%S|T ^TTrTT TT^TT ^th^tp. ?rr^TT qr 1 ^ *nft *rnr-
^r-Pciq^n srrfesr 'T^t ^ i (??) 1975-76 % ^ T R Wf*lU. *FTT ^TTO STTT ^TT- ^T «TTCT ?TR ^TrT M4d^T % fcrmcff *f fer form lr % *n^?sr %fwfi qft ^rr rqq^i *rf ^nrSnff &tnj *ft ?m-qzvr 'R | 1 f W « # ^,{T^3Er ^T^Tt t I ^F'D'i, ^rH bft-| ^ 1977-78 % f^PJ (^r) % f w w STP-T+ <-fcT«rTOT JRT^T & »pft | I ^ ^ TCT OTT ^ T fflTJ ^ffirr % 19 , 544302: *t$ ^Tlff ©q^ cfT^- ^ ^rnicT ^ 21.56 t j w IhmIvm v r w ^ t % <*Vm afira^nr % w ^ STT^ *TRRT ?frt T ^ ff % yf^nr w fon arr t^t | i ^ 1% ^ 3r Ph k ^T-Praf<°i *pjit 5frnr-?mr, gf^ramt % f^rftrrr f ^ r o P r t irnniT 1 gftf^r ^ ¥t ffe ^ ^tur w r qfr >it r t ^ tpt (^r-snfm jft^RT) «fhr mn 3tt% f a M cfrronflr ^TK TT TT*T ?ftT ^ra- *Win*t %■ d l'il ^ ir^ i * 397. «ft ^krrt : ertt s n ^ r r ^ ^ w ' ^T fo rr *i*it ^ 1 HMt*i sftr *n*R f«iHm»t *TWt 1TR5TX C^TPT tlr fW »ra ^ «ldM ^5t f>*TT f*F ■' vnfmr, f^rmfr vr ^?r w P w l^ r, JTtaprTW W T faOTT STTC if 3 T*
* 399. 5
<*cii^ f^TT ^T*T ft? : 1975 1976 p* (^r) w r f^TPT % farfa 20,050 22,891
d °hl 31,584 30,963 'rfrnff qr OTt tot ^ t% tot *rft> 4,239 6,097 "TUT Pi'+v};
372 428 ( ^ ) 5 ^"^ ^ f^T- ^ r ^ T 24 4 % mR^O qr OTt jttt to , 218 53 ^ OTTT % TOT 'rf^TR fTO^ ozrfiRnft PK'tdR f^rr tot; 148 69
(*T) TOT ^ IhTHE MINISTER OF TOURISM §17T fod* olffspnff (TOT AND CIVIL AVIATION (SHRI TOT ? PURUSHOTTAM KAUSHIK): (a) The Central Department of Tourism has no scheme, at present, ) ^T^TpTOT Orissa is contemplating to promote Simlipal National Park as a tourist TOT, H W 660 «ft I 105 t centre. The details are yet to be szrfw *ft snfa^r ff mR uti worked out by them. r ^ n fw , ferSft ^ sTl^TT % PTRt w
.(b) Does not arise. 5ft toY d H i M % qfBt#t nnifimf (STR> WZ fl#3T) if ( 2) ^ WRo qp-o *pr, 103 ^ ®ft I H£ f<5r^n % % 'Sli'tis ^PTT, *ff fce^ft I ^Tfft § I *sft STTTo tHTo TRT TO# J]« pH ^fu'^1 qrr^ro ^q" q5t tnp ^rq^ft q?\ t qf^rR^m snfa^ ^ t 3ft ^ f3Tfl% ^TWT if fqXPT t iH P -u o ^ t€ t ri 1 P^imY (srro> fl^fsr) STTT dHiP*iqi cHld 3nrt fol* 3TN- ^t 3TFft ^ I «TR 9ff % qRuimd: 14 ^ vdHMeK H ht\ % tll^T ^ SRT 3t ^Pft ff I 1 0 STPt qqi^fSTrT 3rt^-M«alH * t 3TT 3T3ftT qspft iiql *ft fjRT^T ^ T 7,400 ^O I f3TH% ^ 1 1 if Ml *i dl TT3T ^F^T 3. f^RT o^Prn % qfr^TTt if ^TPTFT (?ft% 3) % q^TT W ^ ^r¥t f*R>fflTTt % f^TTT if, 5qfi#nTTT T^t STRT *mT-*T m M w h, 1961 if *tf 132(5) % yixpkr in%ir ^ < w r ^ 1 1 3nrt qr fq-^K f e n w 1 1 (^) ^ft^^SITFTf : (3) «ft*Tcft TT 3T JR T , 103 ( l ) «ft f«Mltr ?TRo S l50, ( •PIT ^1 Aetft I 120 *J^T ^PTT, »rf I ^ ^ft^TTTo t^To ip9 tft*F5ft 7,400 ^ ^ t ( ^ m ) % W r o 3ft 3T3ftr q^rft ^pft «ft, qr sfr *rtft d^nftrar % ^qftrfWR- q?t OTTT 132 ( 5) % ?RnrcT 3rrft feT q f ^ i m : sft *nft «ft 1 w nu % ?rtf^T '-Tt % qrcr & jc T 1 «*<)«> 5ft m\ | 1 ^ r % 9>qT * t *r*< ft * f k & TO# HlHK f^T^^FT^r vt q ^ k » q ^ f t m t ^rf^F t I w % ^p? T *T*TT q fw rt ti+^rtj if qniMi srrar ^ *t q * ? *nt 20,000 ft» q ? fcrfv^ ^ >-H *<> ^ft .iir ^ f i ^ ?fk P^Jfq- cflr qr Written Antwers JULY 8, 1977 Written Answers 52;
z w (sT**hr) far* I fir® % aft* V*fta*T 5fW I I TSrnW ^TT T^f % I fcra Itfr* a^r (s r o )
«rf*ro^ OTTT 132(5 )l 132(12) % ilTIMCI ®tSI
(*») (*o)
( 4) 5*^^ ^ Hi’fl 106,
( 5) «ft%0 %o i\H|+K',i TtT f3T »mr | i
(6) sft^frrsnsrtft — wt'rlr— j w ’n?
( 7) sn^rrrt — znrtqfx — l,37,48of 'lift
(8 ) *ft?fto( 9) sft ffrarft — — 'T^T
( 10) *ft *nrifa» in^rRt — ^ q f c —
( 11) j ° *r^r wmmT — ^«T)hR—
( 12) MtsrtVr wm'ihV — m^ imR—
3TTT N d f^r^d *nft o^rlw (^T f l W 4 ^ 12) *PT5 % f , f^R% f W R yrcr urnT^ a t ( ? ^ f :^T%'Tf^,5ft’%0 % oK M rft% »T ra% *fq^t^ 1 ,0 9 ,8 4 7 ^ % 5wi%ncr iff m f^r f 1 ) 53 Written Answers ASADHA 17, 1899 (SAKA) Written Answers
s d iTJwlf % iN W r ?rnr m m ftK m r ^t ST+d^ 5Ti*r 1976 T^T ^t 9TTT ftRT % ^ftwr ^t ^rf
^fhTrft ST%WT ITMFfr . 1 4 ( 1 ) 8,400 ^H^rft HI » • 1 5 ( 1 ) 7,58,500 ^rt ?fto «fto srr^pft «rf«nnf^r ’rfr^R) 1 5 (1 ) 85,778
9f\ l h rR W STRT^ft 1 5 (1 ) 50,000 MYqcft ^R^rft ^ t 5i Ml^fl • 1 5 (1 ) 1,99,760* ( 13 ) ^WTt£ 28, *p*T*nTT, *rf ( 14) TRFs'TRT, 92, 94 ^T^R,'ff
( 15 ) — ( 16 ) sftw ^ff ^rnr — znrhft— ( 1 7 ) MY^rnr^rnr — —
^fHT ^TSqj 1 3 1 7 *R fe*t *pt oZTfiRnTT % OTT ^jferfer *rf?3Rt ^t n«i iDfim eft »T*#t «ff far ^TfTT ?JT^J VT&tt ^TRT W )T TFT *PTfT «!T, ftflfT *PT5 % TTTR^ft if f^THPT 5RT c^TTftPTT ^t *Tf «ff 1 ( 18) Htftf TT3ffa dlVtf tdsii 'Tjfa' 9 ^ - "T^R, R'f I qf^FR ^t cMI^H ^ *TRT *T|ff H°hsi *FTT 5TT I (19) cfto IRTT, 91, ^FR, ^ r lf^ ft I M+'^) *Tf «iHifl ^t 0H«TlH ^t ^TT Tft ^ I (20) 48, ^FR, *Tf [kInstructions to State Governments for the assurance by,-the traders to the opening Fair Price Shops for selling Government that' tHey would bring Cheap Cloth the prices down?
•400. SHRI AHMED* M. PATEL: ^the P m in is t e r * OF c o m m e r c e ^ Will the Minister of COMMERCE AND CIVIL SUPPLIES AND CO AND CIVIL SUPPLIES AND CO OPERATION (SHRI MOHAN DHA OPERATION be pleased to state: RIA): Representatives of the Vanas pati Manufacturers gave an assurance (a) whether Government have issu- on 6 may, 1977 that the price of a 'ed certain instructions to the State 16.5 kg. tin of vanaspati inclusive of Governments for opening fair price excise duty, would not exceed Rs. :shops for selling cheap cloth t° the 158/-. Ruling prices, wherever they ,poor sections of the country; were below this, would .he main tained at that level. At that time (b|) whether Government are aware the ruling price was generally bet that the quota cloth allotted to these ween Rs. 166 and Rs. 168. Since fair price shops are being sold in about the middle of May, the price black market and the shops are al has been generally stable at Rs. ways out of stock of the cheap pro 158/-. ducts; and Two main manufacturers of pack (c) the measures taken by Govern* aged tea reduced the prices of vari ment to check it? ous brands of packaged tea by about Rs. 2 per kg. Between April, 1977 THE MINISTER OF COMMERCE and the latest sale on 4 July, prices AND CIVIL SUPPLIES AND CO of tea in Calcutta auctions came OPERATION (SHRI MOHAN DHA down by a little over Rs. 10/- a kg. RIA): (a) Yes, Sir. As regards other essential com (b) and (c). All retail outlets modities, there was an announce selling controlled cloth are required ment in the Press that a number of to sell the cloth in accordance with industrialists a* Bombay and Cal- the orders issued by the various V cutta had voluntarily decided not to State Governments who are the increase the prices of the products ‘competent authority* under the manufactured by them till 31st De Cotton Textile (Control) Order in cember, 1977. Since that announce each State/Union Territory for regu ment, the wholesale price index for lating the sale of controlled cloth. the major group of manufactured If any specific complaint regarding products in the all-commodities sale of cloth in black market is re wholesale price index has marginally ceived, the same will be investigat gone up. v ed and appropriate action taken. Termination Notices served by L.I.C. to Field Workers
Decline in the prices of Vanaspati *402. SHRI P. K. KODIYAN: Will Ghee and other essential commodities the Minister of FINANCE AND after assurance by Traders REVENUE AND BANKING be pleased to state: *401. SHRI SHIV SAMP ATI RAM: Will the Minister of COM (a) whether the Life Insurance MERCE AND CIVIL SUPPLIES Corporation has served 15-day termi AND COOPERATION be pleaded to nation notices on 150 of its field state the extent to which the prices workers; of vanaspati ghee and other essen tial commodities came down after (b) if so, the reasons therefor; 57 Written Answers ASADHA 17, 1899 (SAKA) Written Answers 5$ (c,) whether the representation tW if TTCU «TPTTT fspw 5TTT made by the L.I.C. Field Workers* Association against the termination notices has been considered; and *4 03. *fTOT : 2PTT
(d). if so, what decision has been cTTT nHlfv* taken thereon? T f t f t fT( * ) W T*TT TRq' o^TTTR THE MINISTER OF FINANCE 3 AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) and (b). The present terms and conditions of ( ^ ) w T m oim n f^nr *r service of development officers link *7^ % fan their remuneration with the pre mium income. The annual remune Trrar T r ^ t ?t t ? ration of a development officer should not exceed 20 per cent of the (b) if so, the particulars thereof? (c) and (d). Some representations THE MINISTER OF FINANCE against the revised terms and condi AND REVENUE AND BANKING tions of service of development offi (SHRI H. M. PATEL): (a) and (b). R.B.I. has prescribed a Minimum cers which include provisions for Lending Rate of 12.5 per cent and termination of service also have been the maximum rate of 16.5 per cent received. The matter is receiving inclusive of the interest tax for all public sector banks and banks with. attention. ;59 Written Answers JULY 8, 1977 Written Answers 60
aggregate time and demand liabili (c) Government have taken a ties of Rs. 50 crores and above. number of steps in this regard, e.g. strong action against foreign ex change offenders, introduction of a Within this broad frame-work of number of schemes for non-resident minimum and maximum lending Indians and persons of Indian origin Tates each bank is free to determine such as (a) opening of Non-Resident its own rate of interest depending on (External) Accounts, (b) opening of the cost of raising resources, deploy Foreign Currency (Non-Resident) ment of credit, the cost of establish Accounts, (c) investment opportuni ment, the size and type of loans etc. ties in new equity issues of new companies in a wide range of select ed industries, (d) priority allotment In consonance with national priori ties certain categories of advances of motor car, scooter, agricultural like advances for financing food tractors, cement, etc. against receipt procurement operations of the Gov of foreign exchange abroad. ernment; advances to priority sec tors upto specified limits covered under the Guarantee Schemes of Unauthorised powerlooms Credit Guarantee Corporation of India; loans under the Differential 2874. SHRI VASANT SATHE: Rate of Interest Scheme, have been Will the Minister of COMMERCE exempted from the operation of Mi AND CIVIL SUPPLIES AND CO nimum Lending Rate. Banks are OPERATION be pleased to state: expected to charge concessional rate of interest from these categories of (a) whether Government are aware advances. of the large number of unauthorised powerlooms operating in various states of the country;
Remittances by Indians living Abroad (b) if so, whether Government pro pose to appoint a Committee to assess 2873. SHRI D. B. CHANDRA GOW the magnitude and nature of the pro DA: Will the Minister of FINANCE blem to take suitable action in the AND REVENUE AND BANKING matter; and be pleased to state: (c) what administrative action is being taken/proposed to deal with Jhe (a) whether unauthorised remit, problem of unauthorised powerlooms tances to India by Indians living in the various States of the country? abroad have come down; m THE MINISTER OF COMMERCE (b) if so, to what extent in the last AND CIVIL SUPPLIES AND CO tw o years; and OPERATION (SHRI MOHAN DHA RIA): (a) Yes, Sir. (c) the efforts made by Govern ment in this regard? (b) and (c). There is no proposal to appoint a Committee to go into the problem of the unauthorised THE MINISTER OF FINANCE powerlooms. A policy for the pow- AND REVENUE AND BANKING eiioom siector which will also deal (SHRI H. M. PATEL): (a) Yes, Sir. with the problem of unauthorised powerlooms in the country is under (b) The exact extent cannot be active consideration of the Govern •estimated. ment. •*6 i Written Answers ASADHA 17, 1899 (SAKA) Written Answers 62 Estimated Overproduction of Natural Jodhpur has resulted in the reduction Rubber of tourist traffic to Jodhpur and Jaisalmer apart from causing inconve. 2876. SHRI VAYALAR RAVI: nience to other passengers visiting the Will the Minister of COMMERCE area; AND CIVIL SUPPLIES AND CO OPERATION be pleased to state: (c) the time by which Government propose to re-start the air services (a) the estimated overproduction of between Delhi, Jodhpur and Bombay; natural rubber in the country during and the yeai: 1976-77; and (d) the action Government propose (b) how Government propose to to take to ensure uninterrupted air dispose of this excess stock and pre services with a view to attract more vent a decline in the price level of tourists? natural rubber?
THE MINISTER OF COMMERCE THE MINISTER OF TOURISM AND CIVIL SUPPLIES AND CO AND CIVIL AVIATION (SHRI OPERA VION (SHRI MOHAN DHA PURUSHOTTAM KAUSHIK): (a) RIA): r.a) The estimated over pro The service IC-123/124 (Bombay/ duction of national rubber in the Alymedabadi/UdaSpur/Jodhpur^ Delhi country during 1976-77 was of the and back) was temporarily suspend order ]ft,000 tonnes. ed in order to facilitate mandatory structural inspection on the HS-748 (b) Government have already fleet, called for by the manufacturers allowed export of 21,000 tonnes of of the aircrafts, viz, M/s. Hawker rubber in 1976-77, the export of £tfddefey Aviation, U.K. which Jjb stiU continuing. Conse- »quently the price of lot rubber (b) and (d). The suspension of (grades 3, 4 and 5 which once came the service has no doubt resulted in down to Rs. 520/- per quintal has some inconvenience to the travelling since improved an^ is at present public, but it was necessitated due ruling around Rs. 600/- per quintal to reasons mentioned in reply to as against the minimum notified part (a). The service was suspended price of Rs. 520/- per quintal for with effect from 7th May, 1977, grade I rubber. Decline in the price which is a comparatively lean period level of natural rubber is checked for tourist traffic to this area. through export of surplus rubber. The question of revising the mini (c) The service is expected to be mum price is also under considera resumed by the end of July. tion of the Government.
Airport at port Blair Air Services to Jodhpur 2877. SHRI MANORANJAN 2876. SHRi R. D. GATTANI: Will BHAKTA: Wilt the Minister of MINISTER OF TOURISM AND TOURISM AND CIVIL AVIATION ‘CIVIL AVIATION be pleased to be pleased to state: state: (a) whether Government propose - (a) the reasons for which air ser to have a new airport at Port Blair; vice between Jodhpur and Delhi has been discontinued; and
(b) whether Government are aware (b) if so, when the construction will ithat r discontinuance of air services to be taken up? 63 Written Answers JULY 8#1977 ' Written Answers I 64 > ’ * THE MINISTER OF TOURISM (b) the year in which the cities AND CIVIL AVIATION (SHRI were classified last and also the list PURUSHOTTAM KAUSHIK): (a) of cities under different classes; and No, Sir. (c) whether Government propose to (b) Does not arise. declare Gwalior as ‘B’ class city in r ■ near future? k
Items reserved for production under THE MINISTER OF FINANCE Handloom Sector AND REVENUE AND BANKING (SHRI H. M. PATEL): .(a ) Cities 2878. SHRI RAMACHANDRAN are classified for the purpose of pay KADANNAPPALLI: Will the Minis ment of house rent allowance and ter of COMMERCE AND CIVIL compensatory (city) allowance to SUPPLIES AND COOPERATION be the Central Government employees pleased to state: into A, B -l, B-2 and C categories on the basis of their population as re (a) whether his attention has been vealed in the last decennial census drawn to the fact that most of the as follows: items reserved for production under handloom sector are being produced in Class Population criterion. the powerloom and very little is being done by the State Governments to A More than 16 lakhs. enforce the Reservation Control B -l Above 8 lakhs but not exceed Order; and ing 16 lakhs. (b) if so, the measures being taken B-2 Above 4 lakhs but not ex by Government in this regard? ceeding 8 lakhs.
THE MINISTER OF COMMERCE C 50,000 and above but not ex AND CIVIL SUPPLIES AND CO ceeding 4 lakhs. OPERATION (SHRI MOHAN DHA RIA): (a) and (b). Some violations While for the payment of house rent of the Reservation Orders have been allowance, only the population of reported and State Governments are the municipal area of city is taken taking action in accordance with the into account, for the payment of provisions of the Reservation Order compensatory (city) allowance, the in respect of these violations. How population of the Urban Agglomera ever, they are being requested to tion of the city, wherever it exists, be more vigilant „and ensure stricter is reckoned for the purpose. Where, implementation of the Reservation however, such Urban Agglomeration Orders. ^ does not exist, the classification of city for the payment of compensa tory (city) allowance also is based Classification of Cities on the population of the municipal area of the city. 2879. SHRI MADHAVRAO SCIN- DIA: Will the Minister of FINANCE (b) Cities were last classified in AND REVENUE AND BANKING be 1974 following the recommendations pleased to state: of the Third Pay Commission. Upto- date lists of the cities classified for (a) criteria fixed for classification the payment of house rent allowance of cities under Class *A\ ‘B\ ‘C\ ‘D’ and compensatory (city) allowance, and so on in the country for purposes are laid on the Table of the House. of giving house rent and other allow [Placed in Library. See No. LT- ances; 642/77]. 65 Written Answers ASADHA 17, 1899 (SAKA) Written Answers
(c) On the basis of the population ment's “soft loan policy” for the S of its Urban Agglomeration as shown industrialisation of backward areas in the 1971 census, Gwalior is al during the 1976-77; ready classified as a B-2 class city and is eligible for the payment of (b) if so, what is the amount dis compensatory (city) allowance to the bursed by them; and Central Government employees. For (c) the amounts already disbursed the payment of house rent allow by the banks in the districts particu ance, however since the population larly Aurangabad, Bhir, Nanded, of the Gwalior city as per 1971 cen Parbhani and Osmanabad which have sus does not exceed 4,00,000, it is been declared as backward by the classified only as ‘C* class town. Planning Commission?
Export/Import of Cast Acrylic Sheets THE MINISTER OF FINANCE AND REVENUE AND BANKING 2880. SHRI BHAGIRATH BHAN- (SHRI H. M. PATEL): (a) to (c). WAR: Will the Minister of COM Presumably, the Hon’ble Member is MERCE AND CIVIL SUPPLIES referring to the loans given by na AND COOPERATION be pleased to tionalised banks at a concessional state: rate of interest in industrially back (a) whether there is any export or ward areas under the Industrial De import of cast acrylic sheets from velopment Bank of India’s Refinance India; and Scheme. Information in respect of such assistance, if any, disbursed by (b) if so,, the price of the product the nationalised banks in the indus indigenous and imported? trially backward areas and in parti THE MINISTER OF COMMERCE cular in the districts of Aurangabad, AND CIVIL SUPPLIES AND CO Bhir, Nanded, Parbhani and Osmana OPERATION (SHRI MOHAN DHA bad is being collected and will be RIA): (a) While import of non- laid on the Table of the House to pearlized acrylic sheets is not allow the extent available. ed, that of pearlized acrylic sheets is allowed on restricted basis to the manufacturers of acrylic buttons. Fresh Investment in Coal Industry There were imports and exports of 2882. SHRI K. PRADHANI: Will polyacrylate sheets during 1975-76 the Minister of FINANCE AND RE and 1976-77 (April—February, 77). VENUE AND BANKING be pleased (b) The average price of imported to state the amount of fresh investment in the coal industry polyacrylate sheets during 1976-77 in the form of preference and equity was Rs. 5.43 per kg. The price of share capital and long term loans indigenous acrylic sheet varies- ac given by public financial institutions cording to thickness and size of the over the last three years? sheet. Generally a 3 mm sheet 3’ x 4’ (weighing approximately 4 kg.) costs between Rs. 100 and Rs. 150. THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. M. PATEL): During the Soft Loan policy of Nationalised Banks last three financial years in the Unit 2881. SHRI T. S. SHRANGARE: Trust of India, Industrial Recons truction Corporation of India, Indus Will the Minister of FINANCE AND trial Finance Corporation of India REVENUE AND BANKING be and the Industrial Credit and Invest pleased tt) state: ment Corporation of India have (a) whether the nationalised banks fiefther made any fresh investment have followed the Central Govern in coal industry in the form of pre 67 Written Answers JULY 8, 1977 Written Answers 68 ference and equity share capital nor ^TTrT Prutth srrfim*r provided any long term loan to this industry. % qr ^ fa 3?t *THT I I Information relating to the Indus trial Development Bank of India and (<*) sftr (*r). w # ct ^ % Life Insurance Corporation of India is being collected and will be laid ^TPT ferRT, Pf Tf Pf^ft on the Table of the House. % 5rfij3nr ir |, ^ VRT % f^TPT % ^ I TT*FcT srrftr- 3>TUT
3>TTY I is WT (b) whether many irregularities f^TFT % f^TPT "Ft ^^TRT *t are being committed by the bank in payment of loans to its members; 3iT f^ m r ^tRt^ o i ftt* (e) whether certain persons have been given loans on the very day of their becoming members or even prior to their enrolment as members of (^ ) frt, ^t Pt» w r tanm irsft («ft THE MINISTER OF COMMERCE grttaro vtfms) : (^) *ft st i AND CIVIL SUPPLIES AND CO OPERATION (SHRI MOHAN DHA ^fo 32, Fr YLT-643/77]. The names of the Chairman and Secretary are: j-;r 'if
Year Chairman Secretary
I974“75 • - ■ Shri R.C. Pathak Mrs. Kamlesh 1975-76 • . ShriK.S. Rana Shri T.C. Gupta 1976-77 . . . Shri K.S. Rana Shri D. Kumar
(b) The inspections carried out by World Bank Aid for Agricultural the Reserve Bank of India during Development Project the years 1975 and 1976 have brought 2886. SHRI R. V. SWAMINATHAN: out certain irregularities in the grant Will the Minister of FINANCE AND of loans to the members of the Bank. REVENUE AND BANKING be pleas ed to state: (c) No such instances have been brought to the notice of the Delhi (a) whether Government have de Administration. cided to launch Agriculture Develop ment Project in the country involv (d) The number of arbitration ing an expenditure of Rs. 17 crores cases filed under Section 60 of the with the help of world bank assist Delhi Cooperative Societies Act, 1972, ance; pending against the defaulting mem (b) if so, the main features thereof; bers is 28. The following steps, among others, have been taken to (c) when the same is likely to be improve the working of the Bank: launched; and (d) the likely amount of World (i) Under the Banking Regula Bank’s assistance? tion Act, inspection is peri THE MINISTER OF FINANCE odically carried out by the AND REVENUE AND BANKING Reserve Bank of India. The (SHRI H. M. PATEL): (a) No Project irregularities pointed out in involving an expenditure of Rs. 17 crores has been evolved for World the inspection reports are Bank assistance. However, there are brought to the notice of the a large number of agricultural develop bank for taking remedial ment projects for which assistance has measures. been secured from the World Bank. (b) to (d). Does not arise. Cii) Guidelines for the grant of loans have been issued to fare m the bank, and it is required 2887. fn^T 5*nr iftTO : to follow the banking prin ^TT ftrcr rTOT T wfaPT ciples in such matters. ^ ■mK f^TT :
fiii) The Reserve Bank of India (*f) 5RT % f^TTT 5^u| eflT ^ have put restrictions on the grant of loans to the Board of Directors. r 1Written Answers JULY 8, 1977 Written Answers 72
(^r) 57, rftOT 5[»To : (?p) THE MINISTER OF FINANCE w r H73iR % r ^ K is fa fa w AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) No such 3 ^ W fr^T T tf S^TR !T|f I instructions have been issue J by Gov f*ra$ % ?n=r ^aVr % (w ernment to public sector undertakings; - *1$ ^ '<'~ - :> s , IP|r W ?RT ^ »Tf i t | (b) Does not arise. t fa?^ ^rf % sfa e% far* 1500 ?rw Money Repatriated from India by Coca Cola4 Company w ?r^cf ipn 2889. SHRI C. K. CHANDRAPPAN r £ i ^ r sft ?ramft 20 Will the Minister of FINANCE AND *r ¥V snrrjfV 'srh: 5*? qr 8 .2 REVENUE AND BANKING be pleased sr%7RT STT3T fppiT | to state the total amount of money repatriated by Coca Cola Company from ( ? ) ^ m 75rr %tm 1 India to its parent organisation Coca Expenditure on Advertisements given Cola Export Corporation abroad under by Public Sector undertakings in various heads such as royalty, interest Souvenirs of Political Parties etc. during the last three years? 2888. SHRIMATI PARVATHI KRI- THE MINISTER OF FINANCE SHNAN: Will the Minister of FINANCE AND REVENUE AND BANKING AND REVENUE AND BANKING be (SHRI H. M. PATEL): Data relating pleased to state: to remittances allowed in favour of (a) whether Government have ask the Coca Cola Export Corporation, New ed all public sector undertakings to Delhi are as follows:— L
(Rs.)
H.O/Area Year Profit r office Service Imports Total expenses Charges
, , 1973 76,10,075 18 54,348 94 64,423 (1971) 1974 81,36,798 35,49>5°5 6,71,549 1,23, 57,852 (*972) 1975 7**23,076 15,76,737 86,99,813 (1973)
41,02,634 3>05»22,o88 T otal 2,28,69,949 35>49>5°5 w Written Answer* ASADHX 17, 1899 (SAKA) Written Answer* 74
For the period after, 1975, no remit country. In some cases, the issue of tance has so lar been allowed. The capital is only to the Indian residents Company has not been allowed remit with a view to bringing about the tance of royalty or interest. stipulated dilution of the non-resident interest under the Foreign Exchange ■r Vc" Raising of Capital by Firms Regulation Act. 2890. SHRI PRASANNBHAI MEHTA: Will the Minister of FINANCE AND Working of Industrial Reconstruction REVENUE AND BANKING be pleased Corporation of India to state: 2891. SHRI CHITTA BASU: Will the (a) whether the Union Government Minister of FINANCE AND REVENUE have allowed 36 firms to raise the AND BANKING be pleased to state: capital upto Rs. 27 crores in the month of May, 1977 alone; (a) whether he has received a memorandum about the working of the (b) if so,, the names of the firms Industrial Reconstruction Corporation who were allowed to raise the capital; of India Limited (IRCI) on April 3. (c) whether they have fulfilled the 1977; conditions for allowing them to raise the capital; (b) whether any action has so far been initiated in this regard; and (d) how much capital each com (c) if so, the nature of such action pany has been allowed to raise; and and the result thereof? (e) to what extent the raising of the capital will help the country? THE MINISTER OF FINANCE AND REVENUE AND BANKING THE MINISTER OF FINANCE (SHRI H. M. PATEL): (a) to (c). AND REVENUE AND BANKING Government have received a memo (SHRI H. M. PATEL): (a) During the randum dated the 3rd April, 1977 about month of May, 1977 approvals were the working 0f the Industrial Recon given under the Capital Issues (Control) struction Corporation of India Limited Act to 44 non-Government companies from the Industrial Reconstruction for raising capital to the extent of Corporation of India Employees Unioa Rs. 26.25 crores. Besides certain general suggestions for improving the working of the Corpora (b) and (d). Names of companies tion the memorandum has laid stress and the amount of capital allowed to on the need for early implementation be raised by each company are given of the R. N. Sen Committee, a Com in the Statement laid on the Table of mittee appointed by the Corporation the House. (Placed in Library. See to look into its working. The recom No. LT-644/75]. mendations of the Committee are under examination of Government in consul (c) Yes, Sir. tation with the Industrial Development Bank of India and the Industrial Re (e) In the case of bonus issues, the construction Corporation of India objective is to bring the shareholders’ Limited. funds retained in business more closely in line, with the total funds employed in business. In the case of new issues Indian Oxygen Limited of capital, the money proposed to be 2892. SHRI RAMANAND TIWARY: raised is necessary to finance the setting Will the Minister of COMMERCE AND up of new industrial projects or for ex CIVIL SUPPLIES AND COOPERA pansion of existing industrial units, TION be pleased to state: keeping an appropriate debt equity ratio. Thus, the raising of^ capital con (a) whether the Indian Oxygen tributes to the industrial growth of the Limited, an export oriented project, 75 Written Answers JULY 8, 1977 Written Answers 76 has not been cleared by Government ^ iwr th** it%ix («ft for the last three years; and : (*?) g^n (b) if so, the reasons therefor? spt 3tt | s ftr
,rz?r tt Tw fe n j^nrrcm THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND COOPERA TION (SHRI MOHAN DHARIA): ( Government are awaiting the report of w r fe fa f^TErffr^r ^ 1 1 an expert group constituted to go into f ^ r if srfofafa *r^r in R ^ the question of the scope of availability of indigenous know-how for the line of *)iqnai TT Pr>fa if manufacture proposed by Indian 'rf^TTT 5fPT faSTT srTcTT I 5TR Oxygen Ltd. 5*nr % 5TtWt & ®r«T- ^rreft | srfa; ^ % TT3T 3KTT I I *f^T5T«ff fa»TT- >ff Tt |J5T $■ V g*T : SHJ^r jfTTf fart^ff TflTCfa sifafafa ntT I fifT ij'ft'f ij- q^rf ^ Tift -•ii'iY ^rf^r 1
2893. Assets and Liabilities of Chief Minis- ter of Karnataka and Members of his fire* ^ Family
2894. SHRI S. NANJESHA GOWDA: (*fr) if Will the Minister of FINANCE AND REVENUE AND BANKING be pleased 3TR ^T5T W rfhT Slfdftfa % to state: arft sfcfV | (a) what, are the assets and liabili T? cI^Tc?r ITT I ties declared by the Chief Minister of ?fre srf? ^r, rft Tt ^srt ^ Karnataka, his wife, daughters and sons-in-law in the Income tax Returns tFFTT^hr ir ’P7 filed during the years 1972-73, 1973- srfafafa iT¥?rf ^ 74, 1974-75, 1975-76 and 1976-77; srk are 5n=nr- (b) whether the assets disclosed by them are disproportionate to their in come; and
(® ) SRRf'Sfrt' HT$RTff (c) if so, what is the action taken or proposed to be taken? 'i »ITT HTCfrr Sffafrfa »Tf?ff TT 1 ^ it THE MINISTER OF FINANCE fMdoijftdl 5RcT% % fsrtr WT ^TPT AND REVENUE AND BANKING air t| I ? (SHRI H.k M. PATEL): (a) A statement ■ 77 Written Answers ASADHA 17, 1899 ( SAKA) Written Answers showing the assets and liabilities de respect of the other two sons-in-law clared by Shri Devaraj Urs, Chief have not been declared in the income Minister of Karnataka in his income- tax returns filed by them. They are tax/wealth-tax returns for various not assessed to wealth-tax. years is annexed. His wife, daughters and one of the sons-in-law are not (b) No, Sir. assessed to income-tax/wealth-tax. The particulars of assets and liabilities in (c) Does not arise.
Statement
Assessment Assets Liabilities Year Rs. Rs.
1972-73 • No return of wealth filed. 1973-74 . Agricultural lands house at Kallphalli, site at Hunsur, shares, jewellery and cash .... i,29>ooo 16,340
1974-75 • Agricultural lands, residential house at Kallahalli, site at Rajamahal Vilas Ex- tention, site at Hunsur, shares, jewellery and pank balances .... 1,86,398 20,014 1975-76 • Agricultural lands, residential house at Kallahalli, residential houre under con struction at Rajamahal Vilas Extension site at Hunsur, shares jewellery and cash at bank ...... r 2,70,474 44,500
1976-77 • Agricultural lands, residential house at Kallahalli, residential house at Rajamahal Vilas Extension, site at Hunsur, shares, jewellery and cash .... 2j54j555 44.333
Memorandum submitted by Polyester (b) The representation of the Poly Users Association of India ester Users Association of India is under consideration. 2895. SHRI SUKHDEO PRASAD VERMA: WM VT Pi'nTrf SHRI G. Y. KRISHNAN: 2896. fag : Will the Minister of FINANCE AND sptt ■jfa fftr REVENUE AND BANKING be pleased to state: fr : (a) whether a delegation of Polyes ter Users Association of India has re (ap) SRT arpST % 7T cently submitted a memorandum to Government; and srfasra *nr f « r f a ^f, 5ft 5 3 * WT (b) if so, the reaction of Govern ment thereon? I;
THE MINISTER OF FINANCE (^ ) a r a' \ AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) Yes Sir. ? 79 Written Answers JULY 8, 1877 Written Answers 8o •
Cooperative Spinning Mills nqt't sfa *TnTT fwiVT *Tt^ ^
2897. DR. BAPU KALDATY: Will the WcTH fa< Minister of COMMERCE AND CIVIL SUPPLIES AND COOPERATION be pleased to state: (^f) TOT (T13TWR) f^«TR (a) the number of cooperative ?RT srTJT ifft fepft iTff spinning mills in the country, State- wise; and 'Jiii ^ Rnrfr mr<,ji i *?t =tt- (b) the production figures of these TTfr JPT5T7 STlft q^TT^ ffcft mills for the year 1976? I; THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND COOPERA TION (SHRI MOHAN DHARIA): (a) Number of cooperative spinning («j) TOT mills sfcatewise, is as under:— if (TOR SJTTfej f%T
^ Sfk No. of State spinning Mills (*T) TOT HTTTT 31^ * 1. Andhra Pradtsh 5 2. Gujarat 5 3- Karnataka 4 w r r wh: h ttt f w m *nft («ft 4- Kerala I ‘ Madhya Pradesh I ^S'Ttrm V tfw ) : (w ) fr (n ): wtzi t Maharashtra 19 % f5frf 8. Rajasthan I | TWj f f v R ’ % 9- Tamil Nadu . 13 f a s w ? ^ w«er ft*r ft«rfa % 10. Uttar Pradesh . I +TV*I| +1 wAlM % ftrcr STM H l1*!- II. West Bengal . I efsr Development of places ftn North- “Hamilton” H'angar at Jaipur Airport Eastern Region as Centres of Tourism 2900. SHRI ROBIN SEN: Will the Minister of TOURISM AND CIVIL 2899. SHRIMATI RENUKA DEVI AVIATION be pleased to state: BARKATAKI: Will the Minister of TOURISM AND CIVIL AVIATION be (a) whether Government are aware pleased to state: that the “Hamilton” hangar at Jaipur (a) thf names of places in North- airport has been dismantled and the Eastern Region that are being deve trusses and sheets are lying stacked loped as centres of tourism; and at the airport;
(b) the steps taken to develop these (b) if so, the reasons therefor and centres sc as to attract tourists there? who is responsible for it; THE MINISTER OF TOURISM AND CIVIL .AVIATION (SHRI PURU- (c) the loss incurred; and SHOTTAM KAUSHIK): (a) and (b). Due mair !y to the restrictions on the (d) the steps taken to punish the entry of foreigners into the North- culprits involved in the matter? Eastern Kegion, international tourism has not developed as rapidly in this THE MINISTER OF TOURISM AND region as in other regions. Certain CIVIL AVIATION (SHRI PURU- areas of North-Eastern Region such as SHOTTAM KAUSHIK); (a) to (d). Kaziranga (Assam) and Shillong The matter is under enquiry and facts (Meghalaya) have been partially de of the case will be placed on the table restricted recently for the visit of of Sabha. international tourists for a period of 7 and 15 days respectively. However, even in these cases intending tourists are required to follow specified routes. Malabar Spinning and Weaving Mill, Within the available resources cer- Calicut jtaih tourism schemes were taken up in this region in the Central Sector. As a 2901. DR. V. A. SEYID MUHAM result, a youth hostel at Darjeeling and MAD' Will the Minister of COM a forest lodge each at Kaziranga and MERCE AND CIVIL SUPPLIES Jaldapara have been constructed. The AND COOPERATION be pleased to existing tourist bungalow at Darjeeling state what help the Central Govern has been expanded and provision has ment propose to extend in the role of been mad * for transport. a ‘Catalyst” to the Government of Kerala if that Government takes over In addition, the Department of Malabar Spinning and Weaving Mill Tourism is contemplating to construct in Calicut which has been closed for two youth hostels, one each at Gangtok a long time causing unemployment of (Sikkim) and the other at Shillong about one thousand workers? (Meghalaya) in the remaining period of the Fifth Five Year Plan. India Tourism Development Corporation are THE MINISTER OF COMMERCE AND also contemplating to construct a 50 CIVIL SUPPLIES AND COOPERA bed hotel at Gauhati. TION (SHRI MOHAN DHARIA): If a financially viable proposal for Selected places of tourist interest in reopening of the Malabar Spinning and the North-Eastern Region are covered weaving Mills under its management for publicity in thte tourist literature is received from the State Government, brought out by the Department of thfe Central Government would extend all possible necessary assistance. Tourism. 83 Written Answers JULY 8, 1977 Written Answers 84
Evasion of Income-Tax by Private completed by the Minor Ports Sur Blood Banks vey Organisation of the Ministry of Shipping and Transport. 2902. DR. SARADISH ROY: Will the Minister of FINANCE AND REVENUE Meanwhile Government of Goa, AND BANKING be pleased to state: Daman and Diu has put up inexpensive accommodation at Calangute Beach (a) whether Government are aware and Colva Beach. that there is a large-scale evasion of income-tax in the private blood banks in the ccuntry; and Memorandum from Kerala State Electronic Development Corpora (b) if so, the steps taken to check tion it? 2904. SHRI M. N. GOVINDAN NAIR: THE MINISTER OF FINANCE Will the Minister of FINANCE AND AND REVENUE AND BANKING REVENUE AND BANKING be pleased (SHRI H. M. PATEL): (a) and (b). A to state: case of suspected evasion of tax by a (a) whether the Kerala State Elec private bl>od bank has come to notice. tronic Development Corporation has Necessary enquiries are being made. urged Central Government to exempt public sector marketing agencies the “Keltron” from excise duty; and Develc pment of Tourism in Goa (b) if so, Government’s decision thereon? 2903. SHRI EDUARDO FALE1RO Will the Minister of TOURISM AND THE MINISTER OF FINANCE CIVIL A\ EATION be pleased to state: AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) Central (a) whether Government are Government do not appear to have aware that Goa has great tourism po received any Memorandum from the tential and attracts large number of Keraia State Electronic Development national as well as foreign tourists; Corporation. and (b) The Government had examined (b) the steps Government contem this question independently, and con plate to lake to develop tourism cessional excise duty rates have been prescribed, as part of 1977 Budget pro there? posals, on radios and transistor sets THE MINISTER OF TOURISM manufactured in small scale units on AND CIVIL AVIATION (SHRI PU- behalf of a State Electronic Develop (RUSHOTTAM KAUSHIK): (a) and ment Corporation. (b). For the development of tourism in Goa, particularly beach tourism, Flying of Aircraft of Indian Airlines the Government of Goa, Daman and by Sanjay Gandhi Diu propose to set up a statutory Goa Tourism Development Authority. The 2905. SHRI JYOTIRMOY BOSU: Will proposal envisages that this authority the Minister of TOURISM AND CIVIL will be financed jointly by the Cen AVIATION be pleased to state: tral Government and the Government of Goa, Daman and Diu. (a) whether Shri Sanjay Gandhi, son of the erstwhile Prime Minister, Shrimati Indira Gandhi, making use A hydrographic survey of beach of his mother's official position used areas in Goa has been undertaken to to illegally fly aircraft of Indian Air identify the areas for aquatic sports. lines; Part of the work has already been 85 Written Answers ASADHA 17, 1899 (SAKA) Written AfttftMflV ( 86
(b) if so, on how many occasions Less than one year io9 he did that; and Between 1-2 yeais 57 Between 2-3 years 30 (c) what action Government pro 3 years and above 28 pose to take against the erstwhile Prime Minister and her son? The need to avoid delays in dealing with these proceedings at all levels and THE MINISTER OF TOURISM AND at all points was emphasised at the CIVIL AVIATION (SHRI PURU- last Conference of Commissioners of SHOTTAM KAUSHIK): (a) and (b). Income-tax held at New Delhi in the According to the report of Shri V. first week of June, 1977. Chellappa, Director of Air Safety, Civil Aviation Department, Shri Sanjay A certain amount of delay occurs Gandhi occupied the Pilot’s seat of an by reason of the elaborate procedure Indian Airlines’ Aircraft during the prescribed under the Central Civil flight from Hyderabad to Tirupati and Services (Classification, Control & Vijayawada on 25-12-1976 but he did Appeal) Rules, 1965, for dealing with not manipulate the controls of the air such cases. craft. No other case has come to the notice of Indian Airlines. 1 The disposal of cases against officers takes time mainly because more than (c) Necessary action has been initi one organisation, such as, the Central ated by the Director General of Civil Bureau of Investigation, the Central Aviation against Shri Sanjay Gandhi Vigilance Commission, and the Union for violation of the Aircraft Rules, Public Service Commission, are associ 1937. ated at various stages in the processing of a case.
Nevertheless, in order to expedite Disposal of Vigilance Cases in Income disposal of such cases, time limits for Tax Department completion of action at various stages 2906. SHRI M. RAM GOPAL REDDY: have been laid down. It is being en Will the Minister of FINANCE AND sured that charge sheets are framed REVENUE AND BANKING be pleased properly to obviate the possibility o£ the issues getting confused and thereby to state: causing delay. Appropriate directions (a) whether the disposal of a num have also been given to the enquiry ber of vigilance cases in the Income officers and the disciplinary authorities Tax Department has been delayed; enjoining on them the need to expedite the processing of the cases. and
(b) if so, the number of cases Harassment by Bombay Customs to pending and steps taken for their Indians coming from Gulf countries early disposal? 2907. SHRI V. M. SUDHEERAN: THE MINISTER OF FINANCE SHRI VAYALAR RAVI: AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) and (b). The Will the Minister of FINANCE AND number of cases of departmental pro REVENUE AND BANKING be pleased ceedings, including vigilance cases in to state: volving allegations of lack of integrity, pending in the Income Tax Department, (a) whether Government have re is 224. ceived any complaints about haras3- ments by the Bombay cusfoms of the The age-wise break up of the pending Indians coming from the Gulf coun cases is as follows:— tries; and $7 ‘ Written Answers JULY 8, 1977 Written Answers 88 (b) if so, what action has been taken (c) Depending upon the facts and • on these complaints? circumstances of each case, suitable - steps are taken from time to time by THE MINISTER OF FINANCE the Income-tax authorities concerned AND REVENUE AND BANKING for recovery of tax arrears in accord (SHRI H. M. PATEL): (a) and (b). ance with the provisions of Chapter Some complaints about delays and XVII-D of the Income-tax Act, 1961 difficulties in customs clearance, ex read with the second Schedule thereof. perienced by the Indians coming from the Gulf countries, were received. The specific complaints have been looked Suspension of Trade Union Leader's in into. In most of the cases, the com Premchand Jute Mill plainants were found to have imported goods in excess of the permissible limits 2909. SHRI SAMAR MUKHERJEE: -and this led to delay in clearance. Will the Minister of COMMERCE AND' CIVIL SUPPLIES AND COOPERA Various measures such as augmen TION be pleased to state: tation of customs staff; review of the (a) whether Government are aware rules and instructions; simplification of that the management of Premchand clearance procedure; and more effective Jute Mill has suspended 59 trade uni supervision have been taken to solve on leaders and activists last year the difficulties of bonafide passengers. even without paying subsistence al lowance to frighten the workmen so that they surrender to the wage-cut; 'and Arrears of income-tax above Rs. 10 . lakhs against firms/individuals (b) if so, the steps taken to witn- draw their suspension? 2908. SHRI KAN WAR L A I GUPTA Will the Minister of FINANCE AND THE MINISTERPF COMMERCE AND REVENUE AND BANKING be pleased CIVIL SUPPLIES AND COOPERA to state': TION (SHRI MOHAN DHARIA): (a) 59 workers of Premchand Mill, which is under lock out at present as (a) the names and addresses of the a result of industrial dispute, were companies, firms and individuals suspended by the management on against whom income-tax demands charges of alleged assault, go-slow and above Rs. 10 lakhs are pending; indisciplinary conduct. (b) the period from which these j (b) Some workers have been taken demands are pending; and back since then and 37 workers are reportedly under suspension at present. (c) what action has been taken by The Government of West Bengal is Croverhment to recover-that amount? taking steps to resolve the industrial dispute. THE MINISTER OF FINANCE AND REVENUE AND BANKING Foreign Accounts in Swiss Banks (SHRI H. M. PATEL): (a) The names of all persons against whom income- 2910. SHRI DURGA CHAND: Will tax demands exceeding Rs.7 10 lakhs the Minister of FINANCE AND REVE were pending as on 30-6-1976 are given NUE AND BANKING be pleased to in the Statement laid on the Table of state: the House. [Placed in Library. See No. LT-645/77.] (a) whether thl foreign accounts in Swiss banks are kept under some (b) This information is not readily code system and the accounts are not available. disclosed; 89 Written Answers ASADHA 17, 1899 ( SAKA) Written Answers
(b) if so, the facts thereof; In the discussions in the UN Group of Experts on Tax Treaties between (c) whether Government are ir Developed and Developing Countries, possession of information that there India has been advocating that ihe ar are accounts kept by Indians in Swiss ticle on 'Exchange of Information’ in banks; if so, the particulars thereof; a double taxation avoidance agree ment between any two countries (d) whether the Government have should be fairly comprehensive so as ever taken up the matter with the to enable the contracting states to get Swiss Government regarding disclo as much information as is possible. sure of accounts kept'by Indians in India has also been advocating that these banks, if so, with what results; pending conclusion of a comprehen and sive double taxation avoidance agree ment, limited agreements providing for (e) whether Government are con exchange-of information may be con templating to take up this matter at cluded. Both India and Switzerland are some international forum; and if so, members of this Group. the details thereof? No tangible results have, however been achieved so far. THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) and (b). fWMT OT ffTO VT Yes, Sir. According to the information available, in case of such accounts only 2 91?. Mt ^ HNIOT nr*ar : an account number is given but the srh firtt ct*tt Trsre* r ifa n wrft identity of the owner is not recorded in the bank ledgers. For withdrawals ^ fhHI I normally a code is used and the per son who orders withdrawal has to sign 1976 d't* f^r^T 4H in code which is compared with a *TT (c) Yes, Sir. However, the informa tion is of general nature and no specific *;? information is available regarding the ‘numbered accounts’ being maintained fiw ?WT iftr jffw. •Toft by Indians in banks in Switzerland. (sft X^o trqO qin) : (*>) 1 *sNrr (d) and (e). With a view to get de 1977 ^ firptT tails of such accounts, if any, talks «Ft a vrere held from 28th June to 2nd July 1976 with officials of the Swiss Gov w ?ft% st nf I ernment for purposes of concluding a comprehensive double taxation avoid viit fassrr 1JT ^ I (*T) W flT+R ^T w HR# ^cTR'T 7T?^> % (M W « *pt ^rN- % ftrcj tpi 5fnrt*r *rfer ®FTft «mtiT w i l % qrr Pt^k 5 ? ? R ! T - ^ V* T<3 f?m amniT 1 <|iP»i*m r f^rctsrn' ^TT % ftfTT ttht fn ^ ii*?i^ ( 'ni^J % IVhci ^rrt ^ropft 1 1 cmTfq-* f m tst a m f%«rr ^rr | i qr T m *flfad ’HIm/ er /<*H ^5t 7^>*TT *T WTtt ^ ^?T% ^fTTtt ^FTT^ff qr ^SRT ff t ^ WHwti ?T9ftcPT % f^TX^ ^l 4KVK' 1^41^ W , iTRWT TT ^ c f t |, « ^ i ( l ?rftrferf n f 1 1 vSpTrTT ^Tf^T^FcTT^ft ^TT q>T% ^TPTT ^TT ?T% TftK ^ 5IW % »TT*T (»J) % (>T) % gf^rfV^'^T ftr^TT 3TT ^T% f^ X&FTft «rrt tr g^rr, fa w s t a r % 5T^!T ^ ^ otrf^T 55TWI WPT 5T*TT i'g l^ 'Sni'51 i([
