CAMIT delegation during its meeting with Shiv Sena MP Sanjay Raut

A delegation of Chamber of Associations of Maharashtra Industry and Trade (CAMIT) led by President Dr Dipen Agrawal recently met Shiv Sena MP Sanjay Raut during his two-day visit to Nagpur. The meeting happened in presence of MLC Dushyant Chaturvedi and Nagpur Shiv Sena Mahanagar Sanghatak Vishal Barbate.

Agrawal welcomed Raut with floral bouquet and submitted memorandums highlighting the three most problematic issues haunting business community: 1) exorbitant hike in rent by corporations and their coercive action, 2) harassment by local body tax department across the state under the garb of assessment and 3) action on MSME by NMRDA. Agrawal also pitched for setting-up Refinery and Petrochemical Complex (RPC) in Vidarbha.

Agrawal further requested Sanjay Raut to use his office to impress upon the state government to recommend to the union government, support and assure to give all necessary clearance in time bound manner for mega Refinery and Petrochemical Complex in and around Nagpur in Vidarbha region. Raut assured the delegation that he will discuss the issue with Chief Minister Uddhav Thackeray and do his best to take the proposal ahead.

Wahab Parekh and Sanjay Nabira from NMC Market Federation said that after persistent follow up and persuasion by CAMIT, state government recently stayed the operation of notification dated 13/09/2019 wherein municipal corporations were directed to collect 8% of market value as annual rent. Government also constituted a committee of government officers to review and fix rent afresh. Now it is being said that the said notification in question does not apply to the licensee Galedharak and that a lease holder is on better footing that that of a license holder.

Raut was informed that lease holder enjoys greater benefits than as compared to license-holder, as the former would be paying less rent (about 2%) whereas the latter enjoys lesser benefits as he would be paying higher rent (about 4% in Nagpur and about 8% in other corporations). They requested Raut to intervene and impress upon state government to notify that the licensee Galedharak are covered under the 13/09/2019 notification or alternatively notify similar rules for licensee Galedharak and tenants.

Shivpratap Singh (President, The Nagpur Itwari Kirana Merchant Association) said that the first notification declaring 5 km area touching outer limits of Nagpur Municipal Corporation (NMC) as Nagpur Metro Region was issued in 1999 and thereafter the Metro Region limit was increased to 10 km before notifying the present limit of 25 km from boundary of NMC. Nagpur Improvement Trust (NIT) was notified as Special Planning Authority for Nagpur Metro Region limits in 2010. NIT passed resolution for preparing development plan for Metro Region in 2012 and published Draft Development Plan (2012-2032) calling objection and suggestions, in 2015. In the meantime, state government established Nagpur Metropolitan Region Development Authority (NMRDA) in 2017. In 2018 Final Development Plan (2012-2032) for Nagpur Metro Region was sanctioned and notified.

Singh further submitted that after a sizeable survey of Nagpur Rural, it was learnt that majority of units i.e. 59% were established before 2012 NIT resolution and 85% of them were established before the first publication of 2015 Draft Development Plan (2012-2032). Hence, it is unjust on part of NMRDA to expect these units to maintain the margins prescribed in DCR (2012-32). Almost every unit following the then prevailing procedure obtained Non-Agriculture (NA) Order from concerned tehsildar and sanction for building plan from concerned gram panchayat. The units in good faith have taken these permissions from them and further submitted to other government agencies to process their applications. Singh requested Sanjay Raut to take-up the issue with government and impress upon them to notify that the MSME units established prior to 06/01/2018 (the date on which the DCR 2012-2032 for Nagpur Metropolitan Region was notified) should be saved from the provisions of the said DCR.

Ashok Sanghvi and Girish Liladia, said that practically Local Body Tax (LBT) was abolished from 31/07/2015 i.e., FY 2015-16. As per LBT Rules 2010, the last date for assessment for FY 2015-16 is 31/03/2021. LBT officers have indulged in 100% assessment of regular LBT cases, whereas LBT Rules provide for assessment only in certain contingencies only. It goes without saying that 100% assessment of regular LBT cases by department is nothing but a tool in the hands of officers to harass and extort the business community. They further informed that department is passing ex-party (best judgement) orders raising inflated & fictitious tax demands and using them to justify continuance of LBT Department. In some case’s back-dated assessment orders for previous years have been issued by department. Records from LBT Appellate Authority will evidence the correctness of our statement. They requested Sanjay Raut to take-up this issue with Government of Maharashtra to close LBT Department in all Municipal Corporations with immediate effect to ensure ease of doing business in the state.

Raut, after a patient hearing, assured to speak to Urban Development Minister Eknath Shinde and keep a meeting of stake holders with the minister. He also assured his presence in the said meeting to resolve the issues to work towards the satisfaction of the business community.