Tax rebate to Companies in safe -haven funded by Indian Banks
Honorable Members of
Parliament,
I was shocked to find
yesterday Essar Steel had commissioned Rs.37,500 crore Flat Products Steel Plant
but soon Firstly found out in 2008 Annual Report it was 93% owned by Cayman
Island company. Secondly this Indian Funded project would not contribute much
to taxes in India, thirdly
it would cause all the pollution in high population density Surat district and fourthly displace existing
facilities in other states due to excess capacity.
Ø
With Rs.37,500
Crores India could have promoted 10,000 Agro Industries – 20 in each district
adding atleast 10% GDP and to benefit 5 crore farmers directly and indirectly
compared to NEGATIVE contribution – reducing net employment and increasing cost
compared to existing units.
My NRI returned friend
invested in Essar Steel subscribing to IPO – purchased 10,000 shares for Rs.220
each when Ruias paid just Rs.10 for each share, for several years ES didn’t
register the share – finally when registered its value Rs.15-Rs.18 and he than
sold it. Had he purchased some plot it would have been worth Rs.10 crores.
Thus Essar Steel largely
financially promoted by Indians and debt funded by Indian Bank and Indian money
was owned by Ruias almost free is now owned and operated by Ruia company from
Cayman Island. Essar Steel retained over subscription as permitted and invested
Free Cash in its control to fund (Oil and Gas, Power, Infrastructure, Ports, Projects,
Services, Shipping, BPO, Telecom, Realty, Information technology, Publishing, Agribusiness,
Essar TV, Partner with Essar, Other businesses.)
Ø
Ruias
transferred ESSAR STEEL to Cayman Islands –
foreign ownership is 93%. So entire group funded by Indian Equity and Indian
Deposits is not registered in India
and not contributing to Taxes in India.
Ø
This alone is
$30b to $50b Loss to India
or transfer of $50b to CAYMAN
Island. (Essar Hutch was
worth $18.9b)
You wondered how Gujarat as
claimed by Narendra Modi is growing fast but firstly not reflected in GDP
figures and secondly Gujarati people continues to be Malnourished, Stunted and
Under Weight. Essar Projects, RIL, Tata, Adani and others contribute nothing to
Gujarat – subsidies are more than tax revenue
when most are owned and operated from Tax Heavens. These Foreign Owned
companies also claim Corporate Tax Concessions called Tax Forgone.
As per latest Monthly Per
Capita Expenditure Gujarat Ranks 8th and 9th among major states.
I quick succession we found
just one family Essar was involved in Foreign Transactions and Illegal Subsidy
to
1. Sales tax subsidy of 125%
of project cost i.e. Rs.9100 crores to Essar Refinery.
2. $20b Essar Hutch sold out
to Vodafone for $12b – India
got nothing – even IT case was lost.
3. Essar Steel too is Cayman
Island Company 93% directly owned and controlled by Ruias.
4. Tata, Ambanis, Mittals,
Ruias, Agarwals etc operate foreign companies from Foreign Heavens with Indian
Money.
Similarly many more
companies Funded By Indian Banks and Indian money are Registered in Foreign
Companies contributing nothing to the states and center as Taxes and little by
way of employment – but polluting our Environment.
Ravinder Singh
January27, 2012
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