The issue relates to the amount of tax BHP owed for selling its Australian commodities via its Singapore marketing business — or allegedly shifting its profits offshore.
Raiding a little more than half of the $95 billion foreign-currency and gold revaluation account would force the RBI to sell an identical proportion of the related assets, or $190 billion. That would trigger a “cataclysmic deflationary shock” for the economy.
The Tamil Nadu state disconnected the smelter's power supply in May following anti-pollution protests that turned violent and culminated in the police opening fire, killing 13 protesters.