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With over 3,70,000 applicants, who have lost their savings to Saradha and similar deposit-taking companies, already knocking the door of Shyamal Sen Commission in the first two weeks, West Bengal government's plan to dole out compensation seems to be a distant goal.
As only 600 cases have been reviewed so far, officials in the Commission indicated, it would take not less than an year only to hear so many cases.
This means, even if the state government manages to generate the required fund for financial aid promised by it, there is hardly any possibility that the financial aid would reach the affected people, any time soon.
"We have received over 3,70,000 applications. Hearing is on. So far 600 cases have been heard," Rupayan Dey, one of the official in the commission told Business Standard. The Commission on an average reviewing 70 to 90 cases a day.
Although, Dey did not comment on how long the review of all the cases taken, officials pointed out, it is a near impossible task to review all the cases within six months, as suggested in the government notification regarding the Commission of Inquiry headed former chief justice of Allahabad High Court Shyamal Kumar Sen.
In such a scenario, the Commission, which, as per its terms of reference, is supposed to "provide hearing", "look into all such complaints" before making recommendations about compensation, may seek an extension to submit its primary report. Even to complete the work within a year, the commission is likely to seek more manpower from states.
In fact, it has been only two weeks and two offices of Commission at Kolkata (for south Bengal) and Siliguri (for north Bengal) will receive applications until June 29.
Meanwhilem the state's finance department at Writers' Building is running out of means to generate the Rs 500 crore for the relief fund as announced by the chief minister. To make the case worse for the government, even its plan to generate Rs 150 crore for relief fund by increasing tax on tobacco is under cloud as inter-state arbitrage could actually lead to a fall in revenue collection.
After the state government issued the notification in this effect on April 26, the tax rate on tobacco products in West Bengal now stands at 35%. As the tax rate on tobacco product is much lower in the neighboring states like Jharkhand, Orissa and Bihar, there is possibility that traders may resort to arbitrage. While Bihar imposes 30%, the tax rate on tobacco products in Jharkhand and Bihar is at 25%.
There is concern that an inter-state arbitrage could actually lead to a fall in revenue collection.
Incidentally, West Bengal industry minister Partha Chatterjee suggested, ITC chairman YC Deveswar recently met chief minister Mamata Banerjee and discussed the issues after government's announcement on additional tax on tobacco products.
