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NMC to piggyback on BOI auction for Rs47 crore Empress Mall dues

Nagpur: After failing to recover its over Rs47 crore dues from Empress Mall, the Nagpur Municipal Corporation (NMC) now wants to piggyback the auction introduced via Bank of India (BOI).
The civic frame will ask the financial institution so as to add its dues in the reserved value fastened for the auction.

BOI, in the public notice issued closing month, had fastened reserve prize at Rs208.42 crore. As per the awareness, the auction is scheduled for February 28. The financial institution, a secured creditor, had issued the awareness for the mall’s sale below Securitization and Reconstruction of Financial Assets Act, for recovery of its overall dues of Rs169.53 crore.

An NMC respectable instructed NewsTread that it was once mandatory for the financial institution to deal with NMC’s dues. “Empress Mall developer KSL and Industries Ltd is likely one of the greatest defaulters of assets tax and water bills. KSL isn't paying assets tax since 2011. Principal quantity of assets tax is Rs16,28,32,084 and penalty is Rs6,27,05,148 aggregating to Rs22,55,37,232. The penalty (double tax) for unauthorized constructions is Rs19,02,85,636. KSL also owes water bill dues of Rsfour,37,00,528, commercial tax of Rs56,25,000 and different fees of Rs52,50,000,” he stated.

The respectable stated that the civic frame was once unable to proceed towards KSL because of pending litigations in the Nagpur bench of Bombay prime courtroom. “KSL had filed petitions challenging notice for demolition of unauthorized constructions and motion proposed for recovery of assets tax and water bill arrears. We will also bring the financial institution’s notice for auction to the awareness of the HC,” he stated.

Amid all this, tenants who run their businesses in the mall are a nervous lot. There are around 180 tenants. Also, controversies surrounding the mall and the flat scheme — Empress City — are but to be resolved.

NMC officers from the city making plans division stated, “The KSL is but to get approval to the revised structure plan and in addition construction plan of the mall and flat scheme involving 11 structures. “We are looking ahead to the HC ruling to begin motion and hence the unauthorized constructions are still intact,” they stated.

KSL could also be dealing with a petition via flat homeowners in the Empress City. Around 63 flat homeowners had filed a petition before the National Consumer Disputes Redressal Commission (NCDRC) in quest of instructions to the developers — Reward Real Estate Company Limited and KSL Industries and Limited — for refund in their payments along side pastime thereon at 16% per annum. They had alleged that the developers had now not performed sale deeds, did not provide confident facilities and in addition did not obtain vital sanctions in spite of promoting the residences six years in the past.


Dues on Empress Mall

*Property tax- Rs 22,55,37, 232 together with major amount- Rs 16,28,32,084 and penalty- Rs 6,27,05,148

*Double assets tax for unauthorized constructions- Rs 19,02,85,636

*Water bill- Rs four,37,00,528

*Advertisement tax- Rs 56,25,000

*Other charges- Rs 52, 50,000

*Bank of India- Rs 169.53 crore

*Power bills also pending for which power supply disconnected some years in the past

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