MUMBAI, February 24: The Brihanmumbai Municipal Corporation (BMC) postponed the auction of the Rs 700-crore Bharat Diamond Bourse at Bandra-Kurla complex after the 200-odd members of the bourse agreed to pay Rs 4 crore property tax it owes to the BMC. The tax has been pending for three years.Mayor Nandu Satam informed today that the auction has been put on hold for a month. The Assesment Department of the BMC had estimated the property situated on 80492 sq mts plot at Rs 700 crore, said Satam.
``However, even if we had auctioned the property, the BMC would have been able to recover only Rs 4 crore as the property belongs to the Maharashtra Metropolitan Regional Develeopment Authority (MMRDA),'' he added.
He added that the tax would not be accepted in instalments as requested by the members earlier as well as in the courts. The members had earlier requested the BMC that they would pay the tax in instalments. However, the BMC turned down the request following which the members approached the Bombay HighCourt. But the court ruled in favour of the BMC.
The members then filed an appeal in the Supreme Court which also ruled in favour of the BMC and also directed the members to pay the tax immediately.
The BMC would, however, not recover the expenditure it incurred on the advertisemnts for the auction, informed Satam.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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