On August 14, 2024, the Government of Haryana announced a new initiative aimed at addressing outstanding Milk Cess payments with the launch of the Vivadon Ka Samadhan (VKS) Scheme. This scheme provides a unique opportunity for milk plants in the state to settle their dues while benefiting from reduced penalties and interest.
Purpose & Scope of the VKS Scheme
The VKS Scheme is designed to address the issue of defaulted Milk Cess payments by milk plants operating in Haryana. The key aspects of the scheme include:
- Voluntary Payment Opportunity: The scheme encourages defaulter milk plants to voluntarily come forward and pay their outstanding Milk Cess dues. This includes any penalties and reasonable simple interest, thus avoiding the imposition of monthly compounded interest as stipulated in the rules.
- Limited-Time Offer: This scheme is a time-bound opportunity for milk plants to clear their Milk Cess liabilities. It covers outstanding payments from the inception of their operations up to July 31, 2024. The aim is to facilitate the settlement of long-standing dues in a structured manner.
Procedure for Application
Milk plants interested in participating in the VKS Scheme must follow a specific application process:
- Notification of Outstanding Amounts: The concerned authority will notify all entities, companies, and milk plants in Haryana of their outstanding Milk Cess amounts as of July 31, 2024.
- Submission of Application:
- Application Format: Applicants must submit their applications using the format provided in Annexure-I of the scheme notification.
- Initial Payment: Along with the application, they must pay 50% of the total amount due, which includes cess, penalties, and interest. This payment should be made to a special account designated by the Haryana Livestock Development Board (HLDB).
- Documentation:
- Proof of Payment: A copy of the payment receipt for the 50% dues must be submitted to the Committee formed under the scheme. This Committee is based at the office of the Managing Director, Haryana Livestock Development Board, Panchkula, as well as to the Administrative Secretary of the Department.
- Proof of Willingness: Submitting the proof of payment will serve as evidence of the applicant’s willingness to adopt the scheme and comply with its conditions.
- Timeline:
- Application Period: The scheme is effective from August 14, 2024, to September 30, 2024.
- Extended Window: Applicants have an additional two months, until November 30, 2024, to complete their application process and settle the remaining dues.
Why Participate in the VKS Scheme?
- Financial Relief: By participating in the scheme, milk plants can reduce their overall financial burden by paying a significant portion of their dues at a reduced interest rate.
- Avoid Compounded Interest: The scheme allows milk plants to avoid the accumulation of monthly compounded interest, which can substantially increase the total amount payable.
- Regulatory Compliance: Settling outstanding dues under this scheme helps milk plants come into compliance with state regulations, potentially avoiding further legal and financial complications.
The Vivadon Ka Samadhan (VKS) Scheme represents a proactive step by the Government of Haryana to address the issue of Milk Cess defaults. It provides a structured and beneficial opportunity for milk plants to resolve their outstanding liabilities while mitigating financial penalties. Milk plants are encouraged to take advantage of this limited-time offer to clear their dues and ensure regulatory compliance.
