Informers’ Rewards under SVLDR Scheme qualify as ‘Ex-Gratia’ Payments: Delhi HC dismisses Writ seeking Full Reward

The Delhi High Court has ruled that rewards given to informers under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) qualify as ex-gratia payments. The case involved an informer who sought the full reward amount promised under the scheme. The court dismissed the writ petition, stating that the reward is discretionary and not a matter of right. The SVLDRS was introduced to resolve legacy disputes related to central excise and service tax by offering taxpayers an opportunity to settle their outstanding dues. Informers who provided information leading to the recovery of dues were eligible for rewards. However, the court clarified that such rewards are ex-gratia payments, subject to the discretion of the authorities. This decision underscores the discretionary nature of rewards under the SVLDRS and the importance of adhering to the scheme’s guidelines.