Dr. Rajat Bhargava, Joint Secretary, Minister of Finance, Department of Economic affairs, Government of India, in a letter to the Deputy Governor, Reserve Bank of India, requested to issue necessary instructions to the concerned authorities for expeditious action to reverse the entry regarding the deduction by the RBI of an amount of Rs. 1274.21 Crores from the account of State of Telangana.
The RBI Deputy Governor has also been advised by the Joint Secretary that money from the consolidated fund of any state shall be transferred or withdrawn only after following constitutional and legal requirements.
This is in response to the letter from the Chief Secretary Telangana Rajeev Sharma to Government of India after the said amount was deducted by the tax recovery officer towards IT dues of the AP Beverages corporations in June 2015. A copy of the letter is marked to the Chief Secretary.
With this an amount of Rs. 1274.21 Crores deducted by the IT Department will be paid back to Government of Telangana, according to a press release by the Chief Minister’s Office. (INN)