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Chidambaram gives benefit of doubt to Robert Vadra in DLF deals

Says Vadra has declared all transactions in his I-T and other returns.

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Finance minister Palaniappan Chidambaram has stopped short of giving a clean chit outright to Robert Vadra in the controversial DLF deals, but came up with enough sound bytes on Saturday suggesting that there may not have been any impropriety after all.

“All I can say is at this moment these allegations pertain to transactions between two private persons or entities.... The individual (Vadra, son-in-law of Sonia Gandhi) has disclosed all these transactions in his income tax and other returns, and perhaps in the returns of the company,” he said in Mumbai, his first visit to financial and commercial capital after becoming FM.

Chidambaram interacted with media persons after attending a couple of high-profile meetings, the first with the governor and the deputy governors of the Reserve Bank of India (RBI) in the morning, followed by the board meeting of the Securities and Exchange Board of India (Sebi), the markets regulator.

Asked about the allegations against Vadra later, the FM said the fact that transactions had taken place does not immediately suggest that there is evidence of corruption. “Now transactions between two private individuals cannot be questioned on the basis of some imputed or implied act of corruption.”

He also met with officials of the mutual fund industry, including several members of industry body, the Association of Mutual Funds in India, and large foreign institutional investors (FIIs).
Chidambaram discussed the subject of new banking licences with the RBI and stated that any moves on the matter would have to be made in conformity with the Banking Laws (Amendment) Bill.

He expressed confidence that the bill would be passed in the winter session of Parliament. “We have discussed this with the RBI and the RBI has agreed to take the process forward. Meanwhile, we have assured the RBI that we will do our best to get the the bill passed,” he said.

He also said the Shome committee would submit its report on the retrospective amendment of the Income Tax Act within a few days. The move will have implications to the decision to collect revenue from telecom company Vodafone following its acquisition of Hutchison Essar in India.

Chidambaram said that the government would like a resolution of the issue soon, and that the report would help deal with pending and anticipated issues concerning such taxation. He also stated that he would work to convince the opposition on FDI of up to 26% in the pension sector and 49% in insurance.

“There is a difference of opinion on that. I would have to do my best to convince the principal opposition party (the BJP) as well other opposition parties. This in the best interest of the insurance industry and the interest of people of India that we must raise the FDI cap from 26% to 49%. I will do just that,” he said.
 

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