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Punjab divests chief secretary of tax charge but that doesn’t end spat with ministers

Punjab ministers are upset with Chief Secretary Karan Avtar Singh for his alleged rude behaviour at a cabinet meeting last week.

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Chandigarh: Reconciliation between Punjab Chief Secretary Karan Avtar Singh and the cabinet ministers doesn’t seem like it will happen anytime soon even after the state government divested Singh of the additional charge of Financial Commissioner, Taxation.

“Matter is far from resolved…”, a Punjab cabinet minister told ThePrint.

The ministers are upset with Singh for his alleged rude behaviour at the cabinet meeting Saturday, when amendments in the 2020-21 liquor policy were being discussed.

On Monday, in an unprecedented move, all ministers resolved not to attend any cabinet meeting where Singh is present. The ministers, led by Finance Minister Manpreet Singh Badal, told Chief Minister Captain Amarinder Singh that they will boycott the top official because of his “rude and wrong behaviour”.

Charanjit Singh Channi, Minister for Technical Education, also levelled allegations of conflict of interest against the chief secretary, saying his son Harman Singh had business interests in liquor contracts in Punjab, and was also involved in mining activity earlier.

Acting on these allegations, the government Tuesday withdrew the additional charge of Financial Commissioner, Taxation, from the chief secretary and handed it to 1991-batch IAS officer A. Venu Prasad. Since Prasad is on leave, the charge is temporarily being held by Principal Secretary, Finance, Anirudh Tiwari.


Also read: Punjab IAS officer says Railways not paying 85% of migrants fare, state footing entire bill


‘Staunchly supporting Badal and Channi’

Sources in the government said Singh was divested of the additional charge to “placate” the ministers.

Discussions among the ministers were held both Tuesday and Wednesday on this matter. Sources also said CM Amarinder has asked some ministers to talk to Badal and Channi to soften their stand.

ThePrint reached Channi through phone calls for comment but he was unavailable, while Badal, who was also contacted through calls, was busy tending to his ailing father.

“The matter is far from resolved. Divesting the chief secretary of the charge of taxation does not change his attitude towards the ministers. The matter will be discussed with the ministers in the coming days,” said the cabinet minister quoted above, who had supported Badal and Channi. 

“… the decision taken will be unanimous. We are staunchly supporting Badal and Channi,” said cabinet minister Tript Rajinder Singh Bajwa.

Demands of liquor contractors

The cabinet meeting Monday was called to discuss the changes needed in the excise policy to resolve the ongoing impasse between the government and liquor contractors.

Last Wednesday, the Punjab government had ordered the opening of liquor shops in the state. On Thursday, the government also allowed liquor to be delivered at homes, capping the amount at 2 litres per order.

Majority of the liquor contractors, however, refused to open their shops demanding compensation for the lockdown period during which they could not open their stores. They also wanted an extension of their contract period until May next year and further demanded that excise should be deposited by them on the basis of their actual sales and not the fixed quota, which is currently being followed.

The contractors also demanded to open the stores beyond the curfew relaxation hours (7 am to 3 pm), besides asking for extended hours of home delivery of liquor.

CM’s decisions

The cabinet had Monday empowered the chief minister to take a final call on the amendments to the excise policy. 

Taking a decision on the matter Wednesday, CM Amarinder ruled out any extension of liquor contracts beyond 31 March 2021. The chief minister, however, agreed to reduce the licence fees on account of losses incurred by the contractors during the lockdown period, from 23 March to 6 May.

The CM also constituted a three-member committee of senior officers to assess the actual loss resulting from the closure of liquor shops. The members are Principal Secretary, Finance, Tiwari, the new Financial Commissioner Taxation, Prasad and Excise and Taxation Commissioner Vivek Pratap Singh.

A group of ministers (GOM) led by finance minister Badal was also set up to consider any future adjustments to be done in the policy, and to also sort out grievances and difficulties raised by the licensees.

On the issue of home delivery of liquor, the CM left the option with the licensees.


Also read: Punjab official’s order to temples, gurdwaras to publicise liquor home delivery kicks up row


 

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