The government should not cancel coal blocks that were allocated a under proper procedures in the wake of Comptroller and Auditor General’s (CAG) report picking holes in the allocation, Adi Godrej, president of the Confederation of Indian Industry said on Wednesday.
“CII is totally against wholesome cancellation of coal blocks, as it’ll adversely impact business sentiment,” Godrej.
There has been much uproar in the Parliament following the CAG report on the allocation of coal blocks, with the opposition demanding cancellation of mining licences.
Conducting a series of raids, the CBI on Tuesday registered FIRs against 20 entities including five companies.
Suggesting a single-window mechanism to address the issues, which lead to delays in coal production like forest and environment clearances, infrastructure bottlenecks and, law and order aspects, he said if there is a violation of norms, action should be taken as per the law.
Hailing the decision to defer General Anti-Avoidance Rules for three years, Godrej said retrospective amendments to income-tax law are inconsistent with Direct Taxes Code proposals.
“Amendments once carried out, will not only have implications on foreign companies’ investment in India but also on domestic Indian companies doing business with foreign suppliers in the past,” he said.