The Bombay High Court (HC) has ruled that banks in India are not allowed to issue Look Out Circulars (LOCs) against defaulters. The decision comes as a relief for many individuals who were facing hurdles while travelling abroad due to LOCs issued by banks. The HC stated that banks must rely on other legal remedies to recover dues and cannot use LOCs as a means of exerting pressure on borrowers.
Bengaluru has introduced a one-time settlement scheme for property tax evasion and defaults. Under this scheme, self-occupied non-RCC residential properties under 1,000 sqft can pay only 25% of the evaded tax as a penalty. Commercial property owners are not eligible for the scheme. The state government expects to generate an additional revenue of Rs 1,500 crore.
