In a significant blow to approximately 10,000 traders in Chandigarh, the Ministry of Home Affairs (MHA) has rejected a proposal for a one-time settlement (OTS) scheme aimed at resolving pending Value Added Tax (VAT) cases. This decision has left traders without the relief they sought, which would have aligned their circumstances with those in neighboring states like Punjab and Haryana, where similar schemes exist. The proposal was put forth by the Union Territory (UT) administration in response to persistent demands from trader organizations, aiming to simplify the resolution of legacy VAT disputes. Traders argue that they are facing unfair penalties for cases dating back to the pre-GST era, with many unable to provide the necessary ‘C Forms’ due to the closure or untraceability of past business partners. The rejected scheme promised substantial relief, including waivers of up to 90% on tax demands and complete exemption from interest and penalties, allowing traders to settle by paying only 10% of the total demand. Local trader leaders, including Sanjeev Chadha and Kailash Jain, have criticized the decision, questioning why Chandigarh traders are not afforded the same protections as those in other states.