GMADA to spend licence fee receipts on development

The Greater Mohali Area Development Authority (GMADA) has decided to spend the licence fee received from the real estate developers on the infrastructure development in the Greater Mohali area. The decision was taken at its recent Executive Committee meeting,chaired by Punjab Chief Secretary SC Agrawal in Chandigarh,following the denial of Income Tax (I-T) exemption on the utilisation of such levy on any other purpose and directive of the state government to this effect.

The meeting was informed that till April 30,GMADA collected Rs 286.07 crore on account of licence fee and has initiated development projects estimated to cost Rs 375.65 crore in different parts of Greater Mohali area. It was told that the remaining funds will be arranged from the same head till the completion of the projects. The development works initiated with the funding of licence fee included providing sewerage and water supply in Zirakpur,Kurali,Ropar,Morinda,Kurali,Dera Bassi,Lalru,Kharar,Banur,Zirakpur; construction of Baba Banda Singh Bahadur memorial in Chapparchiri; hockey stadium in Sector 63; improvement of health services; construction of roads and drains in different parts of the area. It was in November 2010 that the Income Tax department had surveyed the accounts of GMADA and had pointed out certain discrepancies in the utilisation of funds under different heads.

It had not only procured Rs 15 crore on account of Advance Tax but had also demanded Rs 7.76 crore on account of I-T for the assessment year 2008-09,against which GMADA has already filed an appeal seeking stay on the demand notice.