Mandatory hearing under Sabka Vishwas Scheme required before rejecting a declaration; rejection without hearing was invalid.

Rejection of a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, without granting a hearing was invalid. The Scheme requires a statutory process for eligibility verification, estimation of the amount payable and issuance of the statement, and where the estimated amount exceeds the declared amount the declarant must be heard before the final statement is issued. As the designated committee rejected the declaration on the ground that the period, reason and relief claimed were unclear, but did so without complying with the mandatory hearing requirement, the rejection was set aside and the matter remanded for fresh consideration after hearing the declarant.

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Issues: Whether the rejection of the declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, without granting an opportunity of hearing, was valid.

Analysis: The declaration was rejected by the designated committee on the ground that the period, reason and relief claimed were not clear. The Scheme, particularly the provisions governing eligibility, verification of declaration, estimate of amount payable, and issuance of statement, contemplates a statutory process before any liability is fastened. Where the estimated amount exceeds the declared amount, the declarant is entitled to be heard before the final statement is issued. The Scheme is a beneficial enactment intended to bring disputes to an end, and the rejection order resulted in exposure to additional interest and penalty without compliance with the mandatory hearing requirement.

Conclusion: The rejection of the declaration without hearing was invalid and was set aside. The matter was remanded to the designated committee for fresh consideration after granting an opportunity of hearing.

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