<h1>Government approves One-Time Settlement to recover Rs 11,968.88 crore in pre-GST arrears, waives interest and penalties</h1> State cabinet approved a One-Time Settlement (OTS) to recover Rs 11,968.88 crore in pre-GST arrears across multiple state and central tax statutes, covering 20,039 cases from Oct 1-Dec 31, 2025; interest and penalties waived, with tax waivers tiered (100% interest/penalty and 50% tax waiver for demands = Rs 1 crore; 100% interest/penalty and 25% tax waiver for demands between Rs 1-25 crore); recoveries will be enforced after Jan 1, 2026 for non-participants. Cabinet sanctioned prosecution against a former minister in a vigilance corruption case, approved creation of a special NIA court in Mohali, an OTS for 1,688 rice-mill defaults, land-charge claims for illegally occupied government land, and amendments to align the state GST law and Right to Business approvals with recent central reforms.