The Municipal Corporation has slapped a notice on JW Marriott for recovery of Rs 3 crore on account of non-payment of ground rent and service tax. As per the notice,in case of failure to pay the amount,the allotment of the land will be cancelled.
The notice has been issued under Capital of Punjab Development and Regulation 1952. Despite repeated reminders,the owners refused to pay the rent and service tax. That is why the MC has sent a final notice. If the amount is not paid,the allotment of the site will be cancelled. The MC treats the small and large land owners equally without any bias, said Additional Commissioner,Municipal Corporation,Lalit Siwach.
The land on which JW Marriott is constructed was auctioned for Rs 101 crore in October 2006 by the Municipal Corporation on lease for 99 years. The ground rent is charged for the leasehold property by the civic body while the service tax is collected by the MC and given to the Central Excise and Taxation Department. An amount of Rs 2.70 crore is pending as ground rent and Rs 30 lakh as service tax.
In August 2012,the MC had sent a show-cause notice to the hotel owners under Section 12 of the Chandigarh Estate Rules 2007,and a chance for personal hearing was given. When the amount was not cleared,reminder notices were also sent. However,a spokesperson of the hotel group said no notice had been received from the MC.