The government today assured Parliament that due action will be taken against Obulapuram Mining Company, promoted by Karnataka Minister G Janardhana Reddy, for alleged FEMA violation.
"Due action will be taken," Finance Minister Pranab Mukherjee said in the Rajya Sabha replying to a supplementary as to what action the government proposes against the company for alleged violation of Foreign Exchange Management Act.
He said all FEMA violations are offences under customs law and customs authorities will look into it.
When D Raja (CPI) sought a CBI probe into the allegation of illegal mining against Obulapuram Mining Company, the minister said, CBI does not come under Finance Ministry. A specific request for this must come from the state.
He said the Centre has not given any tax exemption exclusively to the Obulapuram Mining Company and Income Tax authority will look into the matter if there is any case of evasion of taxes.
Mukherjee said, "It is their (Income Tax authorities) routine job. They do not have to seek permission from the government (to take action)."
He also informed that the government has collected from the company whatever tax was due.
