Yacht in Kalyan — Court orders ship manufacturer to pay octroi

On July 6, the KDMC had confiscated a yacht being built for Ashok Lal, Prince of Jamnagar, in the waters of the Kalyan creek because the ship-fabricating unit had failed to pay Rs 68,000 in octroi for two engines and two gearboxes purchased from Pune for Rs 17 lakh. The KDMC had threatened that if the octroi, and a fine for octroi evasion coming to an additional Rs 6.8 lakh, were not paid before July 15, the craft would be auctioned.

In her petition filed in the court on Monday, Khandelwal maintained she was willing to pay the octroi but asked the court to stop KDMC from collecting the penalty.

The time lost by the KDMC’s legal department in informing the octroi department about the petition has raised eyebrows in the corporation. Sources said the legal department was aware of the filing of the petition at 10.45 am on Monday but informed the octroi department only at 5.15 pm. Thus there was delay in obtaining the necessary papers from the octroi department. The KDMC’s legal officer Anil Lad was not available for comment.

Meanwhile, the KDMC today initiated criminal proceedings against Ashok Lal and Khandelwal under Section 398 of the Bombay Provincial Municipal Corporation Act, 1949, for securing the penalty.