Pune: The Pune Municipal
Corporation's octroi department has tabled a proposal be-fore municipal
commissioner Mahesh Zagade that building completion certificates should not be
issued to developers until they submit documents proving that octroi has been
paid on materials used for the project. The move comes in the backdrop of the
octroi department issuing notices to three developers recently, who were found
using construction material for which octroi worth lakhs had not been paid.
Head of the octroi department Rajan Muthe said the proposal will help curb tax
evasions on construction materials, like steel and cement.
"We have proposed to the commissioner that we should adopt this as a procedure,
while issuing building completion certificates. We have urged that verifications
must be done to check whether octroi on materials has been paid or not. This
will put a rein in tax evasions and the developer will ensure that his supplier
pays octroi," Muthe said.
PMC's city engineer Prashant Waghmare said the proposal will be implemented
after Zagade takes a decision on it. "In fact, the last time when notices were
sent to three developers, our building-permission department had immediately
issued stop-work orders on their ongoing projects. This made the developers
realise the PMC is keeping a watch and they can¬not afford to use materials for
which octroi isn't paid. Also, more such changes in the system will prevent
similar incidents," Waghmare said.
Meanwhile, Muthe also pointed out that notices have been slapped on at least 28
contractors who have been awarded works under the Jawaharlal Nehru National
Urban Renewal Mission for using material for which octroi was not paid.
"Out of the total 38 contractors currently working on various projects, 28 were
found to be evading octroi. These contractors are working on at least Rs 800
crore-worth projects. Notices have been issued to them to which they should
respond in seven days. We have also proposed to Zagade that contractors must not
be paid till it is ensured that they have paid octroi," Muthe said.
He added that the department has begun a number of drives to keep a check on
evasions.
