An SP member in Rajya Sabha today said a former Governor had alleged that he was removed after he refused to recommend dismissal of two state governments, a charge vehemently denied by the government.
Naresh Agrawal said one of the state governments was of his party SP and the other of Congress.
Terming the matter as "serious", he said Article 356 has been controversial and the Supreme Court has also given many directions on it.
"The Central government must clarify. The Centre has not issued any clarification after the allegations were made out by the former Governor," he said.
"The Centre is trying to rule all over the country like this through proxy. This cannot happen. The Centre must clarify today.. If it is true, we will not keep quiet and this matter will take the shape of an agitation," he said.
Dismissing the allegations, Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi said the former Governor's statement were "politically motivated".
"We do not want to go into the statement made. But it is not based on facts. It is politically motivated and somehwere it is linked to personal interests," he said.
Raising another issue, KTS Tulsi (Nom) said government has given a notice for Minimum Alternative Tax (MAT) which the industry terms as "tax Terrorism".
"By giving a notice on the Minimum Alternative Tax, the Finance Minister hopes to get the demand of Rs 40,000 crores, but in the process it may lose more than Rs.2,80,000 crores which has been received because the industry is taking it as tax terrorism," he said.
Tulsi said the demand of Rs. 40,000 crores by reopening assessments is on a "laughable" legal premise that complying with the directive of SEBI to open a bank account converts them into domestic companies.
The ruling by the authority for the advanced tax is itself contrary to the previous rulings and ought to have been contested by the Department, he said.
"If such demands are sought to be justified, India's financial future is in danger. The Prime Minister may dream big, but, alas, his dreams may be doomed to be shattered. It is only capable of making investment environment most unattractive to foreign investors," he said.
