Banks not lending, MSMEs are suffering due to lack of finance: Mohandas Pai

New Delhi, June 1 (KNN) Expressing concern over Rs 20,000 crore GST refund for exporters stuck with the government, Former Infosys CFO Mohandas Pai told a leading media agency that banks are also not lending and most MSMEs are suffering due to lack of finance.

Talking to PTI, Pai said "Holding up refunds worth Rs 20,000 crore to exporters for flimsy reasons shows the lack of a positive mindset of the tax department."

"Political leaders have to step in urgently and remedy this situation. They have to save citizens from such indifference and bad service," he added.

For the last four years exports have suffered for various reasons and this is very detrimental to India's growth and the country should not suffer due to apathy of tax authorities, Pai said.

"Banks are also not lending and most MSMEs are suffering due to lack of finance," he said.

Lack of money with government also cannot be an excuse under any circumstance, he added.

It is also a very bad development when exporters' liquidity is being badly hurt by lack of refunds, Pai said.

He also rued that citizens suffer when it comes to refunds, but coercive action is taken to collect taxes.

Tax collection has become one-sided in India and in some areas citizens suffer from tax extortion also, he added.

India should not suffer due to apathy of tax authorities, he said.

Exporters’ apex body in India earlier this week said that Rs 20,000 crore refund of exporters is stuck with the government.