Thane Octroi Collection Dept Targets Defaulting Builders and Developers

October 9, 2009	(Be the first to rate this story!)  Loading ...
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The vigilance wing of the octroi collection department of the Thane Municipal Corporation (TMC) has begun targeting city-based builders and developers in a bid to recover octroi revenue from them for the import of construction raw material. The act has ruffled the wings of the builders and developers and is tending to yield good revenue in the form of recovery of lost octroi tax to the corporation. The civic department began targetting the real estate community after reports that they were involved in huge evasion of octroi on import of construction raw materials like steel, cement, sand and bricks. The builders and developers were building multi-storeyed residential and commercial towers in the industrial belt of Wagle Estate as well as Ghodbunder Road to cash in on the real estate boom in the areas.

The vigilance wing authorities checked the import records of the builders to establish this fact. It was also ascertained that these builders operated through transporters who had some understanding with officials and staffers of octroi collection posts to bring in construction raw material without payment of due octroi amount. The wing has shortlisted a real estate developer on Ghodbunder Road. The firm is coming up with a 15-storeyed commercial tower on the arterial road for the setting up of a software park. The project has been duly approved by the civic Town Planning Department and work for the ground floor is already underway in full steam. The firm will lease the space in the park to IT firms. The project will boost the industrial image of the city in the years to come.

“We came across evasion of octroi to the tune of Rs 15.45 lakh on the import of raw materials like steel and cement by the firm without payment of due octroi tax to the corporation,” Arvind Akashi, the Assistant Municipal Commissioner (AMC) in charge of the wing told Thane Plus. He added that the amount was established on the basis of the value of imports as per details provided by the firm. The octroi vigilance wing slapped demand notices on a Mumbai-based packaging firm on October 3 seeking recovery of octroi tax amount along with 10 times penalty for evasion of octroi. The notice has called upon the firm to pay Rs 1.88 crore to the TMC by way of the tax as well as ten times penalty within seven days from the receipt of the notice.

The firm has been warned of action if it failed to comply with the demand notice. The AMC has also warned that it will ask the Town Planning Department not issue the Occupation Certificate (OC) to the upcoming tower unless the firm meets the requirement of the demand notice. The wing is, however, ready to negotiate on the amount of penalty if the firm comes down to the negotiating table. The civic wing has also kept a close watch on the firms importing real estate construction raw materials into the city and its users to recover possible evasion of octroi tax from them. The AMC informed that his wing has kept a close vigil on an upcoming mall in the industrial belt of Wagle Estate. Demand notices would be issued to the concerned mall owners in the next few days.

News Published Under:   Real Estate Developers |

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