The Rs 50 lakh Krishna 1, which was impounded on Sunday, is a 35 mt x 12 mt vessel including six cabins and a deck to host regal parties. It is also the largest vessel to built at the Reti Bunder on the shores of the Kalyan creek in a long time. Ever since construction began two months ago, the area has been a hive of activity and excitement. Reduced to building mainly country craft, dhows, motor-boats and sand dredgers, the Krishna 1 is the largest vessel to be built there in a while.

However, with Khandelwal Marine Enterprises -- a local ship fabricatingunit -- failing to pay Rs 68,000 in octroi for two engines and two gearboxes purchased from Pune worth Rs 17 lakh, the KDMC issued the company notices for the same including a fine for octroi evasion amounting to an additional Rs 6.8 lakh. However, the prince, who owns a fleet of 25 cargo ships, could also face criminal charges, says Deputy Municipal Commissioner in charge of octroi R K Sonawane.

He says the KDMC wrote to Khandelwal Marine Enterprises on June 21, asking them to pay the cess. But there was no response. ``On completion of the stipulated seven-day period on June 28, we slapped a Rs 2 lakh octroi bill on Khandelwal Marine Enterprises. But even that was ignored for over a week. We were thus left no option but to confiscate the vessel and serve them a notice on Sunday which warns that the vessel will be auctioned if the party does not pay up before July 15, 1999.''

Acknowledging the KDMC's notices, proprietor of Khandelwal Marine Enterprises, Ragini Khandelwal, says since the prince owns theyacht, will have to pay the fine and octroi. The orders for the yacht, she explains, its engines and other machinery were placed by Krishnaraj Shipping Company, owned by Lal himself. Therefore, the octroi and fine will be have to paidby him. ``Once the KDMC gets to know who is involved, they will realise their mistake and settle the matter,'' she adds.

Lal, however, told Express Newsline from Jamnagar, Gujarat: ``Whatever has happened is entirely the fabricator's responsibility. My name is being dragged in only because I am the owner.''