Date:03/05/2005 URL: http://www.thehindubusinessline.com/2005/05/03/stories/2005050302860300.htm

Back Chidambaram defends settlement with ITC

Our Bureau

New Delhi , May 2

THE Finance Minster, Mr P. Chidambaram, has defended the Government's decision to go for a compromise settlement with ITC Ltd in the 1987 excise evasion case.

"What we have done is in the best interest of revenue in a matter that was pending for years," Mr Chidambaram said, replying to the debate on the Finance Bill on Monday.

The Finance Minister was responding to the Opposition's criticism on the Government's decision to enter into a compromise after promulgating an Ordinance for the collection of about Rs 800 crore.

Under the settlement, ITC agreed to forego its claim on the Rs 350 crore that it had earlier deposited with the Government, while the Centre agreed not to proceed with its demand for the remaining amount.

Mr Chidambaram said the decision was taken after great deliberation.