• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • About Us
  • Executive Team
  • Investors
  • Privacy Policy
  • Terms Of Use
  • Contact Us

  • Blog
  • Tax Services
    • E-file ITR for Salaried
    • E-file ITR for Business
    • TDS E-file for Business
    • Manage Tax Practice
  • Tax Optimizer
    • Optimize Tax – Salaried
    • Optimize Business Tax
  • Help
    • FAQs
    • Glossary
    • Resources
    • Product Tour
    • Tax Calculator
  • Efiling
  • Income & Investments
  • Tax Compliance
  • Tax Optimization
  • Tax Refunds

Harshad Mehta Case: Special Court Orders Release of Rs 650 cr

June 24, 2016 by Sudhir Kaushik

The Special Court (set up under the Special Court Act of 1992) has ordered the custodian appointed by it to release a sum of Rs 650 crores from the liquidated assets of the Harshad Mehta group of entities against pending claims by various entities. These entities are:

  • Income Tax Department: Rs 28 crore
  • Standard Chartered Bank: Rs 346 crore
  • State Bank of India: Rs 260 crore
  • SBI caps: 16 crore

The payments are to be released on an interim basis on undertakings provided by the receiving entities that the amounts will be brought back to the custodian, if so ordered by the Special Court.
Earlier this year, in March, a similar release of Rs 2,200 crore (Rs 2,000 crore to the Income Tax Department and Rs 200 crore to the SBI) had been made. In ordering the release, the Special Court has taken into account the priorities of claims laid down under Section 11 of the Special Court Act, placing primary liabilities of income tax above the claims of other entities (banks and financial institutions).

What is the Special Court?

In 1992, the Parliament passed the Special Court Act for the trial of offences relating to transactions in securities. It comprises of sitting HC judges at Mumbai. The objective of setting up the Special Court was to recover the huge sums of money that the banks had lost, so that public faith in the financial system could be restored. Any appeal against the order of this Special Court can be made to the Supreme Court only.

Who is the Custodian?

Under the Special Court Act, the custodian has been appointed as the principal administrative officer with the key responsibilities of attaching, managing and liquidating of the assets of the notified entities.

Who was Harshad Mehta?

Harshad Mehta was the main suspect in the securities scam of the early 1990s, which shook the stock exchanges of India extraordinarily. In 2001, he died while still being tried for charges of stock-price manipulation cheating and forgery, which allegedly led to losses of billions of rupees to banks and financial institutions.

Filed Under: Tax Refunds

Primary Sidebar

E-mail Newsletter

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

More to See

TDS RETURN FILING: know law, software process and benefits of outsourcing

September 21, 2022 By Aastha Sharma

How Salary Restructuring Helped in Saving Tax?

August 17, 2022 By Sudhir Kaushik

Tags

advance tax black money budget 2017 claims tax benefits CTC Direct Tax Burden e-file tax return elss ultimate returns form 16 gratuity hard earned money home loan nps HRA income expenses income tax declaration income tax department income tax return income tax saving investment declaration Investment tax saving investor financial needs long-term capital gains medical leave encashment National Pension System NPS plan your investments presumptive taxation scheme retirement benefits return filing deadline save tax section 80c self assessment tax service tax short-term capital gains Suggestions Budget 2017 tax tax-free tax details salaried taxpayers tax efficiency tax optimization tax return filing tax saving tax saving tips taxspanner undeclared income

Footer

Services

  • E-file Tax Returns
  • Tax Optimizer
  • Respond To ITD
  • Consult Experts
  • Tax Practitioners
  • TDS Returns

Help

  • Product Guide
  • FAQs
  • Tax Calculators
  • Glossary
  • Contact Us
  • Forget Password

Taxspanner logo
TaxSpanner is India’s largest and most trusted website that offers online preparation and filing of individual Income Tax Returns (ITR).

Read More

Copyright © 2023 · Span Across IT Solutions Private Limited.