Published On : Thu, Oct 3rd, 2013
Latest News | By Nagpur Today Nagpur News

Evading Octroi Duty, NMC fines Mumbai’s Car Company for Rs 1.50 Crore

According to rules and regulations, if the vehicles are registered with the RTO in any city of Maharashtra, the vehicles could be brought to other cities without paying the Octroi Duty. The Company, taking advantage of the loopholes in the rules and regulations, was sending the cars with the fraudulent registration numbers to Nagpur, and the Area Manager  and Sales Manager then delivered the Audi cars to concerned customers. However, if the customers asked for registration numbers, the Company used to provide fake numbers prepared fraudulently with the help of computers in Jaripatka area, the sources said.

used-car-logo_zps90f93d1fNagpur News: The NMC Commissioner Shyam Wardhane, acting tough, has fined a Mumbai’s Aadya motor car company with a staggering Rs 1.50 crore for evading Octroi Duty, and if the company failed to pay the fine, a seizure warrant would be issued. The car company found the holes in the rules and regulations of RTO registration and took the advantage to the hilt.

According to sources, Mumbai’s Aadya Car Company brought a large number of Audi cars in Nagpur two years ago without paying the Octroi Duty. The fact was noticed by the then Assistant Commissioner of Octroi Department Milind Meshram. The Mumbai’s Aadya Motor Private Limited Company had appointed two agents of the Company. The Company, fraudulently displayed the registration numbers of Mumbai RTO and was bringing the Audi cars in Nagpur.

According to rules and regulations, if the vehicles are registered with the RTO in any city of Maharashtra, the vehicles could be brought to other cities without paying the Octroi Duty. The Company, taking advantage of the loopholes in the rules and regulations, was sending the cars with the fraudulent registration numbers to Nagpur, and the Area Manager  and Sales Manager then delivered the Audi cars to concerned customers. However, if the customers asked for registration numbers, the Company used to provide fake numbers prepared fraudulently with the help of computers in Jaripatka area, the sources said.

The then Assistant Commissioner Milind Meshram exposed the fraud in a professional manner and also filed police complaints in this connection. There are reports of some arrests in the case. The Company was fined Rs 1.50 crore for evading the Octroi Duty fraudulently. However, the Company reached the court doors by arguing that the Assistant Commissioner has no powers to fine such a massive amount. The court then directed and authorized the NMC Commissioner to decide the case. The Commissioner Shyam Wardhane declared the Assistant Commissioner’s action appropriate and fined the Car Company with Rs 1.50 crore for evading the Octroi Duty and also issued the notice in this regard. Moreover, if the Company fails to pay the fine, a seizure action would be taken against the fraudster Company.