The Times of India              03.10.2013 

Nagpur Municipal Corporation moves to recover Rs 1.65Cr penalty from Audi dealer

NAGPUR: The Nagpur Municipal Corporation (NMC) is set to recover octroi, and evasion penalty, of Rs1.65 crore from Mumbai-based Audi car dealer Aadya Motor Car Company Private Ltd. Municipal commissioner Shyam Wardhane has rejected an objection filed by the dealer, and now the civic body is likely to issue a warrant notice to the dealer for delay in paying the penalty amount.

NMC sources told TOI using of warrant notice is under consideration. "Assistant commissioner Mahesh Dhamecha submitted the proposal and it was approved by additional deputy municipal commissioner Pramod Bhusari. Warrant notice will be issued after Wardhane's approval," the sources said.

In 2012, the octroi department led by the then assistant commissioner Milind Meshram had found that 20 Audi cars had entered city limits without paying octroi. The department collected details from the RTO office and initiated action. Similarly, an investigation was launched on Mercedes cars, and 11 of them were found plying in city limits without paying octroi. At that time there were no showrooms of these two brands in the city.

The octroi department slapped ten times penalty of Rs 1.55 crore on the Audi dealer. Dhamecha said the dealer filed a petition in the high court challenging NMC's penalty. "The case was referred to the civic chief for hearing objection. Wardhane upheld the penalty imposed by the octroi department on July 19, 2013. A letter was sent on August 21 to the dealer to pay Rs 1.55 crore within 15 days. But the dealer has not paid the amount yet. The dealer had filed a writ petition in the high court. Department received a copy of the petition a few days ago," he said.

Sources added that the civic body is planning to issue warrant notice as there is no stay or other order from the high court in the case. "The department proposes to levy 2% interest of Rs 3.11 lakh and warrant fee of Rs 6.23 lakh, which would take the total penalty to Rs 1.65 crore."