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This is an archive article published on February 10, 2000

Simplify procedure of refunding octroi, urges Assn

FEBRUARY 9: The Octroi Refund Dalals' Association (ORDA) has urged the Brihanmumbai Municipal Corporation (BMC) to simplify its procedure ...

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FEBRUARY 9: The Octroi Refund Dalals’ Association (ORDA) has urged the Brihanmumbai Municipal Corporation (BMC) to simplify its procedure of refunding octroi to its claimants. The association alleged the BMC has blocked about Rs 55 crore in 70,000 refund claims pending with it for over two years.

“The Constitution provides for refund of octroi collected on those goods which are not for comsumption, sale or use and which are brought into the municipal limits. The amount collected as octroi is expected to be refunded within a period of three to four weeks,” the Association noted. Its president, Parmanand Thakker, said in practice, however, the amount is refunded not before eight months and can take even two years in certain cases.

He blamed the backlog on the BMC’s policy to verify claimants’ money recepits, which are issued by BMC’s own check nakas after payment of octroi, with the check nakas. “This unnecessarily increases paperwork and besides this, BMC has not done anything to increase the members of its staff which handles refund work. Most of the refund workers are women who are naturally reluctant to work overtime and the claims increase,” said Thakker.

Thakker said BMC receives one lakh claims per year. “That makes it 8,000 claims per month. But the BMC is able to refund only 6,500 claims in a year. The only solution is to simplify the procedure of refunding and to increase staff,” said Thakker. He complained that the association’s meetings with joint municipal commissioner, Ajoy Mehta, had not yeilded any results and the BMC was not using the 10 per cent administration fees, charged behind every refund, for a solution to the problem.

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