The Metal and Stainless Steel Merchant’s Association (MASSMA), an apex body for the industry on Saturday threw a spanner in the Devendra Fadnavis government’s much touted initiative of improving the ‘ease of doing business’, claiming it was perturbed by the ‘licence raj’ and ‘regressive taxation policies’ in Maharashtra.

While industry insiders perceived the announcement as posturing for a solution to their grievances, it equipped the Opposition with fresh ammunition to attack the government’s “failure in maintaining a conducive business climate”.

MASSMA president Narsingmal Jain said the group was in talks with the Adani Group for setting up an integrated township for its members at Adalaj near Gandhinagar. He, however, said setting up such a city would take at least two-and-a-half years.

Pravin Bohra, chairman of MASSMA’s media committee, said, “The Adani Group has offered to set up a township with residences, shops and godowns at attractive rates for MASSMA members.”

Reacting to the development, Maharashtra Congress chief and former chief minister Ashok Chavan said, “The government first failed to stop the Centre from moving the International Financial Centre from Mumbai to Gujarat. And now the metal industry is threatening to relocate there. This only shows the Fadnavis government has failed to maintain a conducive business environment.”

Nationalist Congress Party’s national spokesperson Nawab Malik said, “This is part of a larger plan hatched to ruin Mumbai’s image as the country’s financial capital. Prime Minister Modi wants to pitch Ahmedabad as an alternative to Mumbai. Fadnavis can’t oppose Modi’s plan”.

Industries Minister and Shiv Sena leader Subhash Desai, meanwhile, assured that the state won’t allow the industry to shift base. “I will personally raise their concerns with the CM on Monday,” he said.

The association’s prime grouse is non-extension of an amnesty scheme for sales tax arrears. “The association’s members are being harassed by sales tax officials, who are blaming us for tax evasion by some dealers from whom we have obtained goods. We are even ready to pay the tax arrears (collectively worth Rs 250 crore), but had requested the government to grant a waiver from payment of interest and penalty, which is only justified. They haven’t acted against the dealers nor are they acting against officials who were hand-in-glove with them, but they want to harass genuine businessmen,” alleged Jitendra Shah, secretary, MASSMA.

State officials however said extending any such amnesty would lead to similar demands from other industries.

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