Sumitomo moves NCLT against Telangana Genco

Japan’s Sumitomo Corporation has moved the National Company Law Tribunal (NCLT) against Telangana Power Generation Corporation (TS Genco), seeking to initiate insolvency proceedings to recover Rs 76.25 crore from the state government-owned company.This petition comes at a time when the Telangana government is looking to raise funds from Japanese developmental organisations for various projects including the Hyderabad Metro Rail project’s extension. Senior ministers had recently visited Japan seeking investments.Sumitomo had entered into four agreements with the power generation company, formerly known as Andhra Pradesh Power Generation Corporation, for supply of the main equipment for the Srisailam Left Bank Power Station Project in 1991.The Japanese firm has submitted to the tribunal that though it had performed all the obligations under the agreements, the local company withheld certain amounts due and payable, citing dispute with the Income Tax authorities over tax deduced at source.Though the Income Tax Appellate Tribunal and high court had passed favourable orders, TS Genco did not release the payments for years, even as Sumitomo raised invoices between July 2002 and 2004 and sent reminders till January 2018, it said.Sumitomo submitted to the NCLT that the Income Tax Appellate Tribunal had issued orders making it clear that TS Genco was not required to deduct tax at source on payments to the Japanese company.After initially refusing to release the amount on the ground that the tax authorities had filed an appeal before the high court, the power generator said the I-T department may go in for appeal before the Supreme Court.

from The Economic Times https://ift.tt/2MaNdI0
via IFTTT