The estate branch of the Chandigarh municipal corporation on Tuesday ordered the resumption of site of JW Marriott, a five-star hotel in Sector 35, for not paying ground rent and service tax to the tune of Rs 8 crore.
“We have ordered the resumption of the site as the hotel failed to deposit the ground rent for the past five years,” said Uma Shankar Gupta, additional municipal commissioner-cum-estate officer. “We have written to the sub-divisional magistrate to cancel the allotment of the site.”
Gupta said the MC had issued show-cause notices to the hotel several times and its management was also called for personal hearing, but they paid only Rs 3 crore.
He said the hotel was issued the final notice last month, and now the authorities had no alternative to cancellation of the allotment of the site. “It will be done within a week,” he said.
The notice, which has been issued under the Capital of Punjab Development and Regulation Act, 1952, states that the hotel authorities have not paid the ground rent since October 2012. Also, service tax to the tune of Rs 30 lakh hasn’t been paid since 2012, and the total pending amount is Rs 8 crore.
As far as the service tax is concerned, even the municipal corporation got several reminders from the central excise department for not collecting it from the hotel.
In October 2006, the MC allotted 3 acres of land to the hotel in Sector 35 on lease for 99 years at Rs 101 crore.
According to the 1952 legislation, where any transferee makes any default in the payment of any rent due in respect of any lease of any site or building or both or where any transferee or occupier makes any default in the payment of any fee or tax, the estate officer may direct that in addition to the amount of arrears, a sum not exceeding that amount shall be recovered from the transferee or occupier by way of penalty and cancel the lease deed.
{{/usCountry}}According to the 1952 legislation, where any transferee makes any default in the payment of any rent due in respect of any lease of any site or building or both or where any transferee or occupier makes any default in the payment of any fee or tax, the estate officer may direct that in addition to the amount of arrears, a sum not exceeding that amount shall be recovered from the transferee or occupier by way of penalty and cancel the lease deed.
{{/usCountry}}While JW Marriott owner Harpal Singh was not available for comment despite repeated attempts, general managar Dilpreet Singh Bindra said he was not aware of the issue.