S. C. Gupta Vs Union of India And Ors (Delhi High Court)
Delhi High Court held that rewards under informer schemes are ex-gratia payments and thus, lie within the discretion of the competent authority. Court cannot direct Government to grant a particular amount to the informant by way of an award.
Facts- The Petitioner claims that he furnished essential information regarding the excessive sale of non-duty-paid goods by a company, leading to the clandestine removal of goods without duty payment. This critical information on substantial tax evasion directly facilitated the recovery of unpaid dues by the Respondents. Thus, asserting his entitlement to the full reward specified under the relevant guidelines, he seeks a writ of mandamus compelling the Respondents to disburse the claimed reward in its entirety.
Indeed, based on the information provided, a show cause notice was issued to the company and its officials, raising a demand of INR 23.89 crores. In response, the defaulting company availed the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and settled the matter with the Respondents by paying 50% of the duty demand, amounting to INR 11.94 crores. The Petitioner’s entitlement to a reward based on the recovery of unpaid duty arising from his disclosure was acknowledged; however, the Respondents disbursed only 2 percent of the claimed reward amount—i.e., INR 25 lakhs. Thus, Petitioner contends that the reward amount disbursed is grossly inadequate and contrary to the terms outlined in the guidelines.
