CHANDIGARH: The municipal corporation (MC) had committed a major blunder by slapping notices on 15 build-to-suit (BTS) sites and a hotel operating from Rajiv Gandhi Chandigarh Technology Park, oblivious to the fact that the IT Park is exempted from property tax.
The administration in 2003 took a policy decision to exempt the IT Park from property tax for a period of 30 years in a bid to attract companies.
The order approved by then administrator Lt Gen J F R Jacob (retd) read: "In case the Chandigarh Technology Park continues to remain outside the boundaries of the MC, it shall be the commitment of the Chandigarh administration not to levy property tax. It is made clear that this will not preclude the administration from levying any user charges or any charges that may be levied by the administration under Section 7A of the Capital of Punjab Act 1952."
The order further stated: "In case during this period of 30 years the IT Park is included in the boundaries of the municipal corporation, then this commitment shall be binding on the corporation for the above period."
Unaware of the policy decision, the civic body issued provisional notices directing the firms to clear pending property tax ranging from Rs 25 lakh to Rs 1 crore within a month. Expressing displeasure, Raman Aggarwal, co-president of the association, said at the time of allotment, all the firm were promised that the IT Park is exempted from property tax. "Based on this promise, we had applied for plots," said Aggarwal, who received a notice to pay property tax of Rs 78.97 lakh.
Talking to TOI, MC additional commissioner Uma Shankar Gupta said that they had issued notices based on information collected from the estate office. Gupta confirmed to have received a representation and said the firms will not have to pay the tax if IT Park has been exempted.
IT consultant Vineet Verma said the notices created a negative environment. He further said that the authorities should realise and appreciate the importance of the IT Park. "The park has given direct jobs to more than 27,500 professionals. Software exports from the city has touched Rs 3,200 crore in 2016-17, helped in improving the economic growth of the city."
100 COMPANIES
Spread in an area of 350 acres, Rajiv Gandhi Chandigarh Technology Park was conceptualised in 2002 and inaugurated by then Prime Minister Manmohan Singh in September 2005. There are around 100 companies operating from the park, with Infosys the biggest name from phase I of the park. Wipro was roped in for phase II and land measuring 30 acres was allotted, but the company pulled out. Of total, around 40.08 acres of land is lying vacant in the park.
The administration in 2003 took a policy decision to exempt the IT Park from property tax for a period of 30 years in a bid to attract companies.
The order approved by then administrator Lt Gen J F R Jacob (retd) read: "In case the Chandigarh Technology Park continues to remain outside the boundaries of the MC, it shall be the commitment of the Chandigarh administration not to levy property tax. It is made clear that this will not preclude the administration from levying any user charges or any charges that may be levied by the administration under Section 7A of the Capital of Punjab Act 1952."
The order further stated: "In case during this period of 30 years the IT Park is included in the boundaries of the municipal corporation, then this commitment shall be binding on the corporation for the above period."
Unaware of the policy decision, the civic body issued provisional notices directing the firms to clear pending property tax ranging from Rs 25 lakh to Rs 1 crore within a month. Expressing displeasure, Raman Aggarwal, co-president of the association, said at the time of allotment, all the firm were promised that the IT Park is exempted from property tax. "Based on this promise, we had applied for plots," said Aggarwal, who received a notice to pay property tax of Rs 78.97 lakh.
Talking to TOI, MC additional commissioner Uma Shankar Gupta said that they had issued notices based on information collected from the estate office. Gupta confirmed to have received a representation and said the firms will not have to pay the tax if IT Park has been exempted.
IT consultant Vineet Verma said the notices created a negative environment. He further said that the authorities should realise and appreciate the importance of the IT Park. "The park has given direct jobs to more than 27,500 professionals. Software exports from the city has touched Rs 3,200 crore in 2016-17, helped in improving the economic growth of the city."
100 COMPANIES
Spread in an area of 350 acres, Rajiv Gandhi Chandigarh Technology Park was conceptualised in 2002 and inaugurated by then Prime Minister Manmohan Singh in September 2005. There are around 100 companies operating from the park, with Infosys the biggest name from phase I of the park. Wipro was roped in for phase II and land measuring 30 acres was allotted, but the company pulled out. Of total, around 40.08 acres of land is lying vacant in the park.
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