“We are dealing with public money so we have also sought Parliamentary approval to refund the money as we want to make the amendment truly prospective. That is why we have suggested that there should be an undertaking to withdraw all litigations and agreements to ensure that only the principal is paid,” a senior finance ministry official told TOI.
Although many see the amendments as an outcome of the two adverse rulings by international tribunals, the government decision came as a surprise to most analysts.
Government sources said Prime Minister Narendra Modi wanted the legal process to play out and was clear that the issue needed to be addressed. In the past, former finance minister Arun Jaitley had described the retrospective amendments as erroneous.
In fact, in 2014, while presenting his first Budget, Jaitley had assured investors that the Modi government “will not ordinarily bring about any change retrospectively, which creates a fresh liability”, while pointing out that the cases would “reach their logical conclusion”…Read more>>