Ulhasnagar Municipal Corporation Issues Rs 35 Crore Property Tax Notice to Century Rayon

The Ulhasnagar Municipal Corporation (UMC) has ordered a private company, Century Rayon, to pay property tax arrears of nearly Rs 35 crore. This decision comes after a probe panel discovered that the taxable area of the company was undervalued by over 70% in the last six years.

UMC Chief Manisha Awhale has initiated an inquiry into the roles of civic officials and halted the payment to the firm responsible for the initial assessment. The probe committee was formed following allegations by district BJP president Rajesh Vadhrya of undue large-scale tax concessions.

According to the panel's findings, a private firm appointed by UMC, Kolbro Company, recorded 23,15,402 square meters as the taxable area of Century Rayon, a major industrial unit employing over 5,000 people, in the last six years. However, a fresh survey conducted by another private agency pegged the taxable area at 78,44,751 square meters.

Srikant Gore, Vice President of Human Resources at Century Rayon, stated that the company had already settled its tax dues. 'The tax department conducted another survey without our consent. The fresh demand notice is incorrect. We have challenged it in court,' he said.

The UMC's decision has significant implications for both the municipal corporation and Century Rayon. If the company is found to owe the Rs 35 crore, it could face financial strain. On the other hand, the UMC stands to gain a substantial amount of revenue that could be used for public services and infrastructure improvements in Ulhasnagar.

The controversy highlights the need for transparency and accountability in property tax assessments. Civic officials must ensure that such discrepancies do not occur in the future, as they can lead to financial losses for the municipality and legal battles for the affected companies.

Century Rayon, a well-known industrial unit in Ulhasnagar, has been a significant employer in the region for many years. The company's operations have a substantial impact on the local economy, and any financial strain could affect its workforce and the broader community.

The UMC has stated that it will continue to investigate the matter and take appropriate legal action if necessary. The outcome of this case could set a precedent for property tax assessments and compliance in the region, potentially leading to more rigorous oversight and enforcement of tax laws.

As the legal battle unfolds, both the UMC and Century Rayon will need to present their arguments and evidence to the court. The resolution of this case will be closely watched by other industrial units and municipal corporations, as it could have far-reaching implications for property tax regulations and practices.