Chandigarh, April 9 -- In a major setback for nearly 10,000 traders in Chandigarh, the Ministry of home affairs (MHA) has declined to approve a one-time settlement (OTS) scheme for pending VAT cases, dashing their hopes of getting relief on lines similar to those existing in Punjab, Haryana and Himachal Pradesh. The proposal, which was forwarded by the UT administration following persistent demands from trader bodies, sought to address legacy VAT disputes through a simplified settlement mechanism. As per the traders, they are being unfairly penalised in cases from the pre-GST era, often raising hefty demands due to the non-availability of 'C Forms' and other documents. Collecting old 'C Forms' has become increasingly difficult, as many firms involved in past transactions have either ceased operations or are untraceable, they added. In several cases, bank accounts have been frozen, and businesses have been forced to shut down. The settlement scheme was to provide relief, including up to 90% waiver on tax demands, especially in cases involving non-submission of 'C Forms', along with complete exemption from interest and penalties by allowing traders to pay a fraction (just 10%) of the total demand. Beopar Mandal president Sanjeev Chadha asked why Chandigarh traders were being treated unfairly despite the Punjab VAT framework being applicable to UT. Kailash Jain, president of the Udyog Vyapar Mandal, echoed similar concerns, stating that traders in Chandigarh deserve the same relief as those in other states....