Mumbai, 27 October 2026 — Gopaal Dash Baghel has proposed an examination of the feasibility of a Debt Settlement Tax in India, calling for an evidence-based discussion on transparency, financial accountability and responsible debt resolution.

The independent proposal explores whether a carefully designed tax or levy could apply to selected categories of negotiated debt settlements. Its scope, exemptions and practical effects would need detailed economic, legal and regulatory assessment before implementation could be considered.

Baghel places fairness at the centre of the concept. People affected by unemployment, farmers facing crop losses and small businesses experiencing genuine financial hardship should not automatically face an additional burden because they have settled a loan. Appropriate exemptions and protections would be essential.

The proposed study would examine interactions with existing income-tax provisions, insolvency laws, banking rules and debt recovery mechanisms. It would also assess whether an additional levy could discourage legitimate settlements, increase borrower stress, reduce lender recoveries or cost more to administer than it delivers.

Baghel calls for consultation with financial experts, regulators, lenders, businesses and affected borrowers. The assessment should also consider whether improvements to existing settlement procedures could achieve the same objectives more effectively.

This is an independent proposal by Gopaal Dash Baghel for discussion and research. This release does not report any government announcement, approval or implementation of a Debt Settlement Tax.