Indore civic body overrules Treasure Island objection, asks to pay Rs 4.5 cr
Overruling objections filed by the promoters of a mall at a hearing on Monday, the civic body directed Treasure Island to pay Rs 4.50 crore to cover the alleged under-declaration of taxable area.indore Updated: Sep 19, 2014 14:56 IST
Overruling objections filed by the promoters of a mall at a hearing on Monday, the civic body directed Treasure Island to pay Rs 4.50 crore to cover the alleged under-declaration of taxable area.
The promoters have been granted five days’ time to deposit the money, said additional municipal commissioner Devendra Singh.
Following a physical measurement of the site last month, the Indore Municipal Corporation (IMC) claimed that the mall promoters were found to be declaring only half of the taxable area in the property tax self-assessment form.
Entertainment World Developers Private Limited, the holding company for the swanky mall-cum-multiplex, however, contested the civic body’s findings and demanded a chance to present their version of events.
At a hearing conducted by additional municipal commissioner Devendra Singh on Monday, EWDPL representatives said common areas, corridors, passages etc, should not be taxed.
They also demanded that parking space should not be brought within the property tax ambit as parking could not be deemed a commercial activity. The arguments failed to cut much ice with the IMC. "We have directed the management of Treasure Island to pay Rs 4.50 crore. The order was issued Thursday evening," Singh told HT.
An IMC communiqué issued after the measurement declared that the promoters had listed total taxable area in the property tax self-assessment form at 3,19,214 square feet whereas the actual taxable area was 6,65,272 sq feet.
Treasure Island, popularly known as TI, was the first mall-cum-multiplex that opened in the city and continues to be, arguably, the most popular.
Thousands visit the mall every day. It has, however, faced allegations of permissible floor area ratio violations and other irregularities in the past. The inspection carried out in the presence of representatives of the holding company, revealed that parking areas in the first and second basement as well as ground floor were either unlisted or under-reported in the self-assessment form.