CHB marks inquiry into excess payment of Rs 5.5 crore to Parsvnath | punjab$chandigarh | Hindustan Times
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CHB marks inquiry into excess payment of Rs 5.5 crore to Parsvnath

Then CEO did not deduct TDS on Rs 55-crore interest, part of Rs 572-crore refund, paid after project was scrapped

punjab Updated: Apr 23, 2016 13:44 IST
Hillary Victor
Parsavnath

Chandigarh Housing Board (CHB) chairman Maninder Singh has ordered an inquiry into the alleged payment of excess amount of Rs 5.5 crore by the board to Parsvnath Developers in February 2015.

The officials at the time did not account for the Tax Deducted at Source (TDS) amount that belonged to the CHB, principal director of Audit (Central), Chandigarh has recently reported.

“I have ordered an inquiry as responsibility needs to be fixed for causing the loss of Rs 5.5 crore to the board. The amount will also be recovered,” the chairman added.

The money was part of Rs 572 crore, including an interest component of Rs 55 crore, that the CHB refunded to Parsvnath after Prideasia, a residential project of the builder in the IT Park (near the Lalit Hotel), Chandigarh, failed to materialise.

TDS amounting to Rs 5.5 crore should have been deducted on Rs 55 crore, the audit has now pointed out.

The audit report also observed that the revocation deed of the project was signed by the then CHB chief executive officer Kashish Mittal and Parsvnath adviser PK Jain in the presence of the then CHB chief accounts officer AC Juneja and the then superintending engineer, Sunil Kumar.

Kumar now stands suspended in another case. When contacted, Kashish Mittal said, “At the time, I was given the charge of the CEO for just two days. The file had already been prepared by junior officers with the consent of then CHB chairman Vivek Pratap Singh.”

I-T dept has sent demand notices

The fact that Rs 5.5 crore was paid in violation of the law has also been clarified by the income tax department that has issued a demand notice to the board for non-deduction of the amount.

The department has also said that the payment of the amount in the shape of interest is liable for penal provisions under Section 194-A of the Income Tax Act, 1961.

Know the project

In October 2006, the CHB decided to develop residential/commercial and other related infrastructure with Parsvanth Developers at Rajiv Gandhi Chandigarh Technology Park on 123 acres. The land was later returned.

Following court orders in January 2015, the CHB was directed to refund Rs 572 crore to Parsvnath after Prideasia, a residential project of the builder in the IT Park (near The Lalit hotel), Chandigarh, failed to materialise. TDS amounting to Rs 5.5 crore should have been deducted on Rs 55 crore, an audit report has now pointed out, leading to the ordering of the inquiry.

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