Gandhinagar, 17 January 2012

For last many months, Gujarat government was silent in reaction to fancy accusations of opposition leaders. However on the run up of the assembly election scheduled to take place in December this year, it seems the Gujarat government has lately started exposing every baseless allegation made by the opposition leaders.

Yesterday it was Gujarat Congress President Shri Arjun Modhwadia’s turn. Modhwadia yesterday accused Chief Minister Narendra Modi of taking an industrialist Girish Luthra to his recent China tour and also alleged that it was Luthra who paid part of the expenses of Modi’s China tour. However in few hours of Modhwadia’s such statement, the state government spokesperson minister issued a release clarifying that Luthra was not part of the Chief Minister’s delegation to China at all, and there’s no question of Luthra bearing part of the expenses of Chief Minister’s China tour!

Today it was leader of opposition Shaktisinh Gohil’s turn. Gohil in a press release claimed that ‘it was a sustained campaign by Congress in Gujarat assembly that forced Gujarat government to go in appeal against Gujarat High Court order which held the Essar eligible for incentives of Rs 9,100 crore from Gujarat government’. Gohil’s this statement was in reference to today’s Supreme Court judgement.

Within few hours, Gujarat government spokesperson Saurabh Patel issued a statement and literally demolished Gohil’s claim. Patel said that Gohil was lying and trying to get credit without playing any role in this matter. Patel dubbed this as one more example that shows how Shaktisinh and Gujarat Congress leaders lie.

Demolishing the claim made by the leader of opposition, the minister said, “the leader of opposition Shaktisinh Gohil today claimed that it was a sustained campaign by Congress in Gujarat assembly that forced Gujarat government to go in appeal against Gujarat High Court order, but the fact is that there was no Gujarat assembly session convened in the period between the High Court verdict and Gujarat government’s move to challenge it in Supreme Court.”

The minister added that Chief Minister Modi took prompt decision to challenge the pro-Essar judgement of Gujarat HC in Supreme Court within 100 days and hired Solicitor General and Additional Solicitor General. The state government did not demand any adjournment in the Supreme Court throughout the court battle in this case, the minister further added.

Minister Saurabh Patel further said that Gujarat government had denied extension of scheme to Essar on 28 May 2002, and thus refused any benefit or privilege to Essar company. “What the leader of opposition has to say on this?” the minister raised in a question.

Early this month Gujarat Congress leader Shankersinh Vaghela claimed in one public rally that former CM and BJP leader Keshubhai Patel talked to him over a phone call and gave blessings to his Sardar Sandesh Yatra criticizing present Gujarat government. However within few hours of this news published, Keshubhai Patel issued strong denial and said that he had not at all talked with Vaghela either on phone call or in person, and there’s no question arise of supporting his Sardar Sandesh Yatra or giving him blessings!Miffed Vaghela stopped claiming to have Keshubhai’s blessings, further on in successive public meetings.

Essar clarifies

Meanwhile Essar company has clarified that today’s judgement deals with the applicability of a sales tax deferment scheme offered by the state of Gujarat.

Essar statement said, “as per the state government, Essar was not entitled to the deferment scheme because it could not commence commercial production within the prescribed period.”

According to Essar, commercial production was delayed because of the actions of the state government and certain orders passed by the honourable High Court which was later set aside by the Supreme Court, and therefore it was entitled to an extended date of commercial production.

Essar said, the Supreme Court has upheld the stand of the state government as a result of which Essar is not entitled to the deferment scheme. It needs to be clarified that the scheme was not for sales tax exemption in toto but was only for a deferment of payment of Sales tax. In view of the judgement the payment of tax which was to be made in deferred installments, may face some changes in the timeline.

The company concluded the statement saying that, one would have to examine the order in detail before commenting any further.