| Tax worth crores evaded with official collusion
The octroi department of Municipal Corporation of Greater Mumbai (MCGM) has come under Anti-Corruption Bureau (ACB)�s scanner for cases of octroi evasion. The department, which contributes a whooping Rs2,856 crore annually to the MCGM treasury, is one of the major sources of revenue for the state exchequer. One particular case is of evasion to the tune of Rs3.24 crore by the Jogeshwari-based Patel Engineering Limited. The company imported 145 tonne Micro Tunnel equipment, collectively worth Rs8.9 crore, on September 13-14, 2005. Normally, this attracts an octroi duty of Rs49 lakh. However, documents available with this paper suggest that the amount was adjusted to Rs16.4 lakh, apparently after a deal was reached between the Shiv Shakti Octroi Agent, representative of Patel Engineering Limited, and the concerned octroi officials . The octroi agent, it is felt, concealed two of the three bills and the containers were not checked properly. The then assistant assessor and collector (octroi), Central Vigilance Squad G T Mandve � now deputy assessor and collector � detected the evasion after nine months. Investigations revealed that total octroi payable by the company was Rs49 lakh. The octroi agent had paid only Rs16 lakh. Mandve then wrote a letter to Patel Engineering Limited on June 21, 2006. The letter � a copy of which is in possession of DNA � mentions that there was little doubt that the company had made a false declaration. Mandve also instructed the company to pay the remaining Rs 32 lakh, along with 10 times penalty to avoid further legal complications. Failing which, the letter further says, stern action would be taken. However Mandve collected only Rs 31 lakh from the company. Senior officials believe that cases like this are common and cost the exchequer at least half of its due octroi component. If sources are to be believed, the company concerned spent Rs 1.6 crore to avoid payment of Rs 3.24 crore. Joint Municipal Commissioner Dr Satish Bhide said, �The goods were imported under Export Promotion Capital Goods scheme of the Central Government. The goods claimed to have been brought in without paying octroi never entered MCGM limits�. Mandve said, �Investigations into the matter began after an anonymous call to vigilance department. Officials of Patel Engineering did not cooperate. So we procured all bills of entry from its Custom House Agent and sent a demand of Rs 3.24 crore�. However, he could not explain how registration numbers of all six vehicles appear on the B form filled at Eastern Express Highway octroi post. January 12, 2007 |