The income tax searches on the houses of a Karnataka Minister and his MP brother on Wednesday found its echo in Parliament. Protesting Congress members disrupted the proceedings even as Finance Minister Arun Jaitley insisted that the searches, which took place in the resort on Bengaluru's outskirts where Gujarat Congress MLAs are housed, had no connection with the Rajya Sabha polls in that State.
Congress members vociferously raised the issue in both the Rajya Sabha and the Lok Sabha, forcing four adjournments of the Upper House before the final one for the day at 2.45 p.m.
In the Lok Sabha, the Congress members staged a walkout.
Mr. Jaitley, who spoke on the issue in both the Houses, said that no search operation was conducted at the resort. He said only the Minister, who had “parked himself” at the resort, was picked up from there for questioning.
Here are the live updates:
6:00 pm: Lok Sabha is adjourned for the day.
5:52 pm: Anandrao Adsul (Shiv Sena) says not a single Public Sector bank is made liable for the rising stressed assets, but there are several heads of cooperative banks behind the bars for their rising NPAs. Why are PSU banks held liable, he asks.
5:45 pm: Rabindra Kumar Jena recalls Arun Jaitley's speech when he was the Leader of Opposition where he said ordinances are abuse of power. It maybe noted that the Banking Regulation Amendments were passed as ordinance.
Even Africa has 3 per cent NPA, lesser than us, he says. This Bill is only going to give limited success, warms Mr. Jena.
5:30 pm: Saugata Roy (Trinamool Congress) opposes the Bill saying it is not a necessary Bill and didn't require an ordinance. Under existing laws the government could have taken steps under NPA. What was the government doing for three years as the NPAs rose, asks Mr. Roy. He names the "toxic twelve," which collectively amount to the maximum NPA of Rs. 2,53,729 crores.
Is Reserve Bank the appropriate authority to take actions? The RBI is totally inefficient and incapable. They are still counting demonetised money for six months, he says.
The banking sector is on the verge of collapse, claims Mr. Roy.
5.15 pm: Congress' Gourav Gogoi from Assam: "Non Performing Assets increased by 100% in 1 year. Govt. has taken credit for containing inflation, fiscal deficit but what about NPAs? Names of companies that have taken Rs. 500 to 1000 cr. of loans must be revealed."
5.10 pm: AIADMK's Senguttavan: "Rising NPAs is a serious problem. As banks advance huge capital to industries, they have to bear the brunt of the loss. It is essential to restore PS banks to their original strength. RBI has the powers to give directions to banks/ banking companies to ensure resolution of stressed assests. The huge NPAs are due to declining sense of morality. Banks have become prey to those who cheat our resources. We need an enactment to penalise loan defaulters. A provision maybe also be available in the Banking Regulation Act for the same purpose and criminal proceedings need to be initiated when it is found that false credentials are provided to avail of loans."
5.00 pm: Adhir Chowdhury: "This Ordinance compromises on RBI's role as a regulator. Govt makes no commitment for resolution process by banks. NPAs are increasing which is a threat to our economy. "
Dr. Udit Raj: "The banks do not have professionals to assess the insolvency situations. The Bill is long overdue.
4.45 pm: Voting underway for Consideration and Passing of Integrated Goods and Services Tax (extension to Jammu & Kashmir). The Bill is passed.
Lok Sabha moves on to Consideration of Banking Regulation Amendment Bill.
4.30 pm: Arun Jaitley continues his explanation on the GST
"One of the objects of GST is to aid and assist domestic products. All foreign products coming into India, an addition to basic customs duty, an integrated GST is charged. That disadvantage will help in 'Make in India' product. In the earlier regime, with VAT and excise, the case in point is sanitary napkins. Earlier rate was 13.8%. Previously people did not say anything as it was part of the cost. The GST Council decided to levy 12%. A large Indian manufacturer is taxed at 12% minus input credit. When he gets input credit the rate becomes much less. "
"Every member of the Council is neither being pressurised by political demonstrations nor personal issues when they look at the rates to take a decision."
4.05 pm: CPI(M)'s Mohammad Salim from West Bengal: Over the last few months, small traders are feeling insecure because of GST.
Jaitley answers: "There are questions that whether GST will infringe on J&K's special status. In J&K, separatists said that GST will lead to greater integration and India and they urged everyone to not go in for GST. Without getting into controversy, the special status was never created to create economic impediments for the state. The State must economically progress in the larger interests of the people. The structure was set up by the UPA and I agreed to UPA's tax structure as I felt it was correct. In the GST Board, government has the majorilty. No decision can be taken without the consent of the government. CAG audit is applicable on GSTN."
"Let us abolish the abolish that GST has too many slabs. This is an argument not for people people for for the rich people. Those who are advocating single tax have learnt from western society where there is no BPL. An indirect tax is a regressive form of taxation. As it moves forward, there will be scope for rationalising the rates. The 12 and 18% slabs may over a period of time get normalised into one slab. But executing that immediately would not have worked. "
"Earlier entertainment tax was levied by the states only - 20 % to 110%. State governments are entitled to give tax refunds to films of that language. In actuality there is a reduction in tax.
3.45 pm: BJP's Anurag Thakur from Himachal: "Shyama Prasad Mukherjee put in a lot of effort for integration of the country. We stand for integration of Jammu & Kashmir. GST has finally removed octroi and multiple taxes."
3.30 pm: TRS' Konda Vishweshwar Reddy, Telangana: "Because of non-tax compliance, tax revenues are much lower in two-tier cities than in major cities. This can be detrimental in J&K. The GST Council, we are worried, are working at a normal pace. They should be working at a war pace so that these issues are sorted out immediately."
BJP's Thupstan Chhewang from J&K: "While an Ordinance was required to bring GST into effect, it has culminated into this Bill now, in the favour of the people of Jammu and Kashmir."
3.20 pm: Jayadev Galla( TDP) from Andhra Pradesh: "Agricultural items are removed from the purview of GST. However, there are some commodities that come under the tax reform net. 5% GST is imposed on red chillies whereas 0% GST is imposed on green chillies. I request you to bring down the rate to 0%. Guntur is the largest producer of chillies in the world. Please exclude sanitary napkins from the purview of GST. Also branded vegetables are included under GST which deters people from getting quality produce"
3.00 pm: Dr. Jayavardhan (AIADMK) speaks on the execution of GST in Tamil Nadu. "There are problems faced by manufacturers due to GST. Fireworks industry mostly consist of small scale units. The present GST rate is 28% and it is difficult for them to sustain. It is essential to reconsider GST rate for some services such as tax on restaurants, fish nets, dyes and chemicals, sanitary napkins, tractor equipments and accessories etc. "
2.45 pm: Lok Sabha: Kalyan Banerjee (AITC), West Bengal: "Tax rates for almost all products have gone up. SMEs are still not aware of the effect of the new tax regime."
Mr. Kharge interrupts and a ruckus ensues.
"Should advocates pay GST or not, please answer this question. GST has made our lives costly. Kindly reconsider the fixation of rates made by GST Council," asks Mr.Banerjee to Mr. Jaitley.
2: 40 pm: Rajya Sabha is adjourned till 11 am on Thursday amid protests against the income tax searches in Karnataka
2.30 pm: Lok Sabha: "Congress is with the GST Bill. But we are against the methods. Tax slabs were announced only before the tax was rolled out thereby making it difficult for people. Govt. has created tax only for the experts not for the common man. J& K is a sensitive state. Its principal revenue generation is via tourism. We as a parliament have to make sure that its economy is not undermined by 'Finance Ministry's terrorism'. If GST is not rolled back, tourism is likely to suffer very badly in Kashmir. This much of complexity in a tax structure is likely to lead to arbitrage. There is a great threat of litigation coming up as to which service will fall under which slab. With a judicial system that is really backlogged, it would be more difficult if there are tax based litigations as well. The govt's version of GST would have a negative impact on the economy and not a positive one," says Congress' Sashi Tharoor from Thiruvananthapuram.
2.15 pm: Rajya Sabha: Amidst ruckus, Companies (Amendment) Bill, 2017 is moved by MoS . Rajya Sabha adjourned for 10 mins.
1.00 pm: Lok Sabha is adjourned till 2 pm
12.45 pm: Lok Sabha: Prahalad Joshi: Kerala has witnessed many political murders in the last few months. A petrol bomb was hurled at the BJP office in Thiruvananthapuram. But, no action has been taken by the state government.
Meenakshi Lekhi gives out the names of all the victims of political murders in Kerala.
12.20 pm: Lok Sabha:
Odisha Minister speaks on deaths due to lightning and floods in the state. Urges govt. to consider giving ex-gratia payment of Rs 10 lakh for those affected by lightining.
Mr. Kharge brings up the Karnataka raids issue again.
I-T raids are being undertaken due to corruption charges against the leader. INC and Rahul Gandhi, Sonia Gandhi should come clean, says Ananth Kumar, Minister of Parliamentary Affairs.
12.15 pm: Rajya Sabha adjourned till 2 pm
12.02 pm: Lok Sabha: " MLAs are being pressurised and threatened by IT officers. This was first done in Gujarat and now in Karnataka. Political vendetta has been plotted against our party," says Mallikarjun Kharge.
Arun Jaitley replies: "No IT raid happened in any resort or on MLA in Gujarat. In Karnataka, searches are being undertaken in 39 places. Leader himself went to resort."
Chirag Kumar Paswan (LJSP) of Bihar speaks: there is a need to constitute Yuva Aayog to deal with all matters of the youth.
MPs continue to present notices despite sloganeering from Congress members of the House.
11.50 am: Rajya Sabha: Tiruchi Siva asks for bettwe facilities for widows at Vrindavan .
CPI(M)'s Somaprasad: The Indian Athletic Federation has been indulging in bias during selection. Gold medallist PU Chitra was expelled from the team unfairly.
Question Hour begins under the chairmanship of Hamid Ansari. Ruckus in the House. Rajya Sabha adjourned till 12.14 pm
11.45 am: Lok Sabha: Dinesh Trivedi: "Cyber warfare is the next big thing. Cyber attack is both internal and eternal. Would the govt consider having a separate ministry for cyber affairs?"
Minister of Information Technology Ravi Shankar Prasad answers," Cyber war is akin to a bloodless war. Even though there are digital fugitives, the attack o India has been minimum as we have been taken necessary steps."
11.40 am: Rajya Sabha: CPI(M)'s D.Raja: "Niti Aayog has recommended outright sale of 100% govt. holding in Kamarajar port, Chennai. This is anti-national and unpatriotic. I oppose this decision. Urge the govt. to reconsider. This is the first major port in the country. Kamarajar port is a profit-making major port. Its a major public sector port."
11.30 am: Lok Sabha: Farook Abdullah raises the question of train services in Jammu.
CPI(M)'s Mohammad Salim says,"Trains are running late throughout the country." Mr. Prabhu answers: The delay is due to heavy congestion. The traffic has increased more than the available infrastructure. This is why we are undertaking doubling and tripling work especially in areas where the congestion is heavy."
Railway Minister Suresh Prabhu speaks on rail engineering and bullet trains. "The railway budget provides for projects that have been going on for a long time. We consider the least cost options. To ensure the modernisation of the entire railway network, we have plans in place."
Another question on railway projects, including Bullet trains being posed to Mr. Prabhu. "How can these trains work in India when trains like Rajdhani are delayed anyway? How serious are they to cope with the current infrastructure keeping in mind the current infrastructure."
Mr. Prabhu's reply: "Work has been going on for the last several months. we are using integrated signalling. Japan is the best railway network operator in the world where safety is best. Japanese themselves are getting involved which will ensure that safety is maintained. 16% of railway network carries 60% of traffic. 16500 km of doubling and tripling has been done for the first time in India. "
11.20 am: Rajya Sabha adjourned for 10 minutes
11.15 am: Lok Sabha: During Question Hour, AIADMK's Ashok Kumar raises a query on Reduction in levies for auctioned spectrum.
11:00 am: Rajya Sabha: Leader of Opposition, Ghulam Nabi Azad: The election should be fair. Why raids today? Why not a month ago?
MPs storm the well, sloganeering continues.
Congress' Anand Sharma raises raids happening at Karnataka now. "No MLA has been seached. A particular individual had to be searched. He had parked himself in that resort. As of now, they have taken him into his residence. No search or tax officers are at the resort. A Minister of Karnataka has been searched. The resort is not an immunity area. He has been taken to his residence and questioned there," says Finance Minister Arun Jaitley
To give a bit of context into the issue, due to the continuous defection of Gujarat Congress MLAs to BJP, the Congress has housed 40 of its MLAs at a resort in Bengaluru.
