Court quashes SVLDRS forms, orders review of payable amount

The court quashed and set aside Form SVLDRS-3 and Form SVLDRS-4, directing the Designated Committee to provide a hearing to the petitioner and issue revised forms within four weeks. The court emphasized the violation of natural justice principles due to the increased payable amount without a hearing. It clarified no opinion on the merits and allowed the petition without costs.

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Issues Involved:
1. Issuance of Form SVLDRS-3 demanding a higher amount than initially approved.
2. Inaction on the rectification application filed by the petitioner.
3. Violation of principles of natural justice.
4. Non-compliance with procedural requirements under the SVLDR Scheme.

Issue-wise Detailed Analysis:

1. Issuance of Form SVLDRS-3 demanding a higher amount than initially approved:
The petitioner challenged the issuance of Form SVLDRS-3, which demanded Rs. 2,19,82,499/- against the initially approved amount of Rs. 71,11,033.80 in Form SVLDRS-2. The petitioner argued that the Designated Committee did not provide any benefit for the amount already deposited/pre-deposited by the petitioner, which was beyond the declaration and acceptance.

2. Inaction on the rectification application filed by the petitioner:
The petitioner filed a rectification application under Section 128 of the Finance Act, requesting the Designated Committee to issue a revised Form SVLDRS-3 after considering the pre-deposited amount. Despite repeated reminders, the Designated Committee did not respond, compelling the petitioner to file this petition. The court noted that the Respondents' failure to pass an appropriate order on the rectification application was unacceptable and in breach of Rule 6(6) of the SVLDRS Rules.

3. Violation of principles of natural justice:
The court found that the Designated Committee's action of issuing Form SVLDRS-3 with an increased payable amount without granting the petitioner an opportunity for a hearing violated the principles of natural justice. The court emphasized that when a person faces adverse civil consequences, such as enhanced dues, compliance with principles of natural justice, including notice and hearing, is mandatory. The court held that the decision-making process was invalid due to non-compliance with these principles.

4. Non-compliance with procedural requirements under the SVLDR Scheme:
The court observed that the Respondents initially accepted the amount stated to be payable by the petitioner under the Scheme and issued Form SVLDRS-2 for Rs. 71,11,033.80. However, without the petitioner's knowledge or notice, the Designated Committee issued Form SVLDRS-3 for Rs. 2,19,82,499/-. The court noted that the verification report from the jurisdictional divisional commissioner, which formed the basis for the increased amount, was not shared with the petitioner. The court held that the Respondents' failure to provide an opportunity for the petitioner to review the report and be heard was a gross violation of natural justice principles.

Conclusion:
The court quashed and set aside Form SVLDRS-3 No. L060320SV301216 dated 06-02-2020 and Form SVLDRS-4 L030720SV400980 dated 03-07-2020. The Designated Committee was directed to provide an opportunity for a hearing to the petitioner and, after considering all material and submissions, issue appropriate orders, including revised Forms SVLDRS-3 and SVLDRS-4, within four weeks. The court clarified that it had not expressed any opinion on the merits of the matter and allowed the petition without any order as to costs.

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