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PCMC sends Tata Motors notice for Rs 259 crore tax dues on unregistered properties

The PCMC officials have alleged that Tata Motors has been refusing them entry inside its plant located on Telco Road to inspect the unregistered properties for tax assessment.

Written by Manoj Dattatrye More | Pune |
Updated: July 12, 2021 9:41:31 am
tata motors tax evasion, tata motors pune, tata motors, pcmc tata motors tax notice, pimpri chinchwad tata motors, Pune news, Tata Motors, Pune tata motors tax evasion, indian express news, latest pune newsThe logo of Tata Motors Ltd. is displayed on a Tata Safari Storme sport-utility vehicle (SUV) on display inside the Prabhadevi Concorde Motors India Ltd. dealership in Mumbai. (Image source: Bloomberg)

The Pimpri-Chinchwad Municipal Corporation (PCMC) has sent Tata Motors Ltd (TML) a notice for tax dues amounting to Rs 259 crore on alleged unregistered properties. The PCMC officials have alleged that the global automobile company has been refusing them entry inside its plant located on Telco Road to inspect the unregistered properties for tax assessment.

“We have served two notices to Tata Motors. One is for Rs 194 crore and another is for Rs 65 crore. The notice was served on June 25. We have given them 21 days to register their objections. After that we will initiate further action,” PCMC deputy commissioner Smita Zagade told The Indian Express.

Zagade said Tata Motors has constructed some structures inside its plant between 2008 and 2019 and has so far failed to register them with the civic body.

PCMC officials said they were neither able to assess the tax on these properties nor get to know how many properties and structures were constructed or extended. “Our officials went several times to the plant, but they were stopped at the gates and were not allowed to enter inside by the security officials,” Zagade said.

“We were repeatedly told that senior officials will look into it, our headquarters will look into it and so on. We got such vague replies. It is difficult to establish contact with the relevant authority of Tata Motors,” she said.

As a result, Zagade said they took the help of satellite images to find out the exact number of structures set up inside. “They have set up structures on at least 8 hectares of land. They include parking sheds, canteen, offices etc,” she said. After PCMC showed the Tata Motors officials the satellite images, Zagade said they submitted a sanctioned plan and map. “Based on these documents, we have assessed the tax dues and served them the notice,” she added.

When contacted, a Tata Motors spokesperson said, “Tata Motors is a law-abiding corporate citizen and conducts its operations in compliance with applicable policies and regulations. Tata Motors has been paying the due property tax to PCMC since its inception, in respect of its properties at Bhosari. In FY 21-22 also, Tata Motors has paid the property tax for the first half of the year as per the bills issued by the PCMC. As is the normal practice, property tax is being assessed by the PCMC for some of the buildings in Bhosari.”

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