Action in textile rebate scam evokes mixed response

The suspension of 42 excise officers of Surat, in connection with the Rs 14.70 crore excise rebate scam, has evoked mixed response from the industry. While some welcomed the move, some others have termed it unwarranted.

"The action taken against the excise officers is certainly appropriate. Scams cause huge losses and have adverse effect on the country's economy. The action is necessary to deter the government officials from conniving with the fraudsters, and indulging in white collar crimes," Dinesh Mandalaywala, president, Southern Gujarat Chamber of Commerce and Industry president, told Business Standard.

"We do not know how many of the suspended officials are actually involved in the scam. But the department certainly would have acted on the basis of some evidence. The government should frame laws for even stricter action against corrupt officials, as this will boost the morale of the honest officials," Mandalaywala added.

An officer of the central excise department, termed the mass suspension as unwarranted and unjustified.

"It is true that some officers were involved in the excise rebate scam, but due to the hasty step of the department, many innocent officers have also been victimised. The department should have conducted a detailed probe, and also heard the officers, before taking such a decision," he said.

Sanjeev Sharma, an excise consultant, termed it a bold decision, but charged the department of discrimination.

"Forty-two officers, mostly superintendents and inspectors, have been suspended, while two deputy commissioners and two assistant commissioners, who are also suspected to be involved in the rebate scam, have been only been transferred, not suspended."