In brief | Cabinet defers call on Finance Commission

In brief | Cabinet defers call on Finance Commission

The Cabinet deferred an announcement on changes in the purview areas of the 13th Finance Commission, a constitutional body that determines the tax relationship between the Union government and states, although it discussed the matter in its meeting on Friday.

It also decided to accord a Bill that proposes to set up five new All India Institutes of Medical Sciences (AIIMS) “highest priority" during the winter session of Parliament and cleared a proposal to spend Rs8,000 crore on flood-control activities in the major river basins.

“The AIIMS Bill will be the first item of this session of Parliament," information and broadcasting minister Priya Ranjan Dasmunsi said. “And the sooner states submit their project reports on flood control, the sooner we can clear the funds."

The Cabinet decided not to increase air travel costs pilgrims going to Jeddah and Medina for Haj.

Era Constructions in billing probe

New Delhi: The income-tax department said in a statement that based on incriminating documents seized and investigation conducted subsequently, a company it raided recently admitted to undisclosed income of Rs53 crore. It didn’t disclose the name of the company. PTI, citing unidentified people, said the company in question was Era Constructions Ltd, a medium-size publicly traded company. An income-tax spokesperson declined to comment on the name of the company.

Citing unidentified people, PTI said raids were conducted at 24 premises of Era Constructions on 24 October, and Era has been found engaged in procuring bogus bills from its suppliers and inflating its expenses and reporting reduced profits leading to tax evasion. Despite repeated attempts, Era officials could not be contacted. Era was listed in 2005. In the year ended March, it posted a net profit of Rs79.12 crore on revenues of Rs784.98 crore.

- Staff Writer

Fiat sells Kurla property

Mumbai:Fiat India Pvt Ltd sold its 53-acre Kurla property to IKG Associates, an Infrastructure Leasing & Financial Services Ltd (IL&FS) affiliate, for Rs608 crore. The Mumbai plant used to make Uno and Palio cars. Fiat started to offer voluntary retirement schemes to its Kurla employees last year. The company shifted production of the Palio to its new plant in Ranjangaon in February. The new plant is a joint venture between Fiat and Tata Motors Ltd with an investment of Rs4,000 crore.

- Ammar Master