Samajwadi Party leader Azam Khan gets relief in ₹20-crore cess case

Samajwadi Party leader and former Uttar Pradesh minister Azam Khan is currently incarcerated in Sitapur jail on various charges.

Granting relief to senior Samajwadi Party (SP) leader and former Uttar Pradesh minister Azam Khan, the court of Moradabad divisional commissioner Aunjaneya Kumar Singh on Friday overturned an earlier order that demanded a ₹20-crore cess from the Mohammad Ali Jauhar University Trust, headed by Khan, a senior administrative official confirmed. The earlier order was passed by the Rampur assistant labour commissioner.

Azam Khan had filed an appeal against the Rampur assistant labour commissioner’s order, which was heard by the Moradabad divisional commissioner (FILE PHOTO)

Samajwadi Party leader Azam Khan is currently incarcerated in Sitapur jail on various charges.

The case stems from a 2018 order by the Rampur assistant labour commissioner, which assessed the construction cost of Mohammad Ali Jauhar University in Rampur at ₹2,000 crore. Based on this valuation, a 1% cess amounting to ₹20 crore was imposed on the trust under the Building and Other Construction Workers’ Welfare Cess Act, 1996. The cess was intended to fund welfare schemes for construction workers. However, Khan and his legal team contested the order, arguing that the valuation was inflated and the imposition of the cess was unjustified.

Azam Khan filed an appeal against the assistant labour commissioner’s order, which was heard by the Moradabad divisional commissioner. After reviewing the arguments, the commissioner ruled in favour of Khan, declaring the earlier order null and void. The court found merit in Khan’s contention that the assessment of the university’s construction cost was not adequately substantiated, rendering the cess demand invalid.

Reacting to the verdict, a lawyer representing Khan expressed relief, stating that the decision vindicates his stance against what they describe as “politically motivated” actions.

The Mohammad Ali Jauhar University was established by Khan in 2006 in Rampur. The institution has often been at the centre of controversies over allegations of land encroachment, financial irregularities, and misuse of power..