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Defaulters rush to pay cess on vehicles

mumbai Updated: Jan 26, 2010 01:09 IST
G. Mohiuddin Jeddy
G. Mohiuddin Jeddy
Hindustan Times
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High profile defaulters are rushing to the Cess department of Navi Mumbai Municipal Corporation (NMMC) to clear their dues for vehicles registered in Navi Mumbai. NMMC claimed Rs 50 crore is due in unpaid cess.

The Cess department released a list of defaulters that include top sportsmen, politicians, builders and industrialists. The list includes cricketer Sachin Tendulkar, composer and singer Shankar Mahadevan, Governor of Tripura Dr D.Y. Patil, both the Reliance groups and builder Suresh Wadhwa.

Cess in Navi Mumbai is levied in lieu of octroi. While octroi is charged at 5.5 per cent in Mumbai when the vehicles enter the city, in Navi Mumbai, 1 per cent cess is to be paid by the buyer.

“The defaulters registered their vehicles in Navi Mumbai by giving a local address. Hence they did not have to pay octroi. However, they did not pay our cess,” added Pendhari.

NMMC said 1.5 lakh vehicles have been sold in the city since 2005. “The defaulters have been sent at least four notices each.”

Pendhari said the addresses of several defaulters were found to be wrong. “Some addresses are of slum areas and we could not find anyone. In Sachin’s case, we found a friend of his at Sanpada, whose address has been given for the BMW bought by him.”

However, the room number given by the Cess department does not exist in the Sanpada building. Sachin’s BMW was reportedly valued at Rs 30 lakh.

Pendhari added that after the news came in the media, the defaulters started paying up.

“We have received payments from Patil, Mahadevan will be paying in sometime, the Reliance Ambani group people are here and ready to pay for 96 vehicles and the Mukesh group, too, is paying.”

The defaulters will also have to pay two per cent fine for every month’s delay. They may also have to pay a fine up to 10 times the cess amount.