Ahmedabad: In an attempt to recover the Rs 8,200 crore sales tax liability of Essar Oil Ltd, the Gujarat government on Monday seized four bank accounts of the company. The move came after the Gujarat high court rejected the company’s writ petition seeking a direction on repyament of sales tax on 25 June.
The division bench of Justice P.B. Majmudar and Justice Mohinder Pal had directed the state to expedite the recovery process.
A senior state government official confirmed the development and declined to give further details.
In a media statement, Essar Oil said it was surprised and disappointed by the Gujarat government’s unexpected step of attaching its bank accounts despite the company clearly stating its intent to pay the sales tax due to the state.