Post News Network
Cuttack, March 31: The Orissa Olympic Association (OOA) has defaulted on paying holding tax arrears amounting to Rs 1.86 crore.
Even as the row over Barabati Palace is yet to die down, the alleged tax evasion is all set to add to the sports body’s woes. According to sources, a week ahead of this financial year-end, the Cuttack Municipal Corporation (CMC) had served demand notices on the Cuttack collector and Orissa Olympic Association authorities.
As the Cuttack district administration has taken over charge of Barabati Palace (Kalyan Mandap) and 23 shops built on government land adjacent to Barabati Stadium following Supreme Court orders in January this year, the district collector has been asked to respond to the notice.
According to sources, it has been mentioned in the notice served on the district collector that the cumulative holding tax dues on the 23 shops amounts to Rs 8.86 lakh. Similarly, it is mentioned in the notice issued to the OOA that Rs 1.78 crore is payable towards holding tax of Barabati stadium.
The holding tax of Barabati Stadium was recomputed after the issue regarding pendency of the holding tax was brought to the notice of the CMC commissioner last year. As per the fresh assessment, the stadium would have to pay Rs 44 lakh towards holding tax per annum. However, it is unclear whether the authorities have calculated the property tax due on it at the earlier rates or the revised ones.
Meanwhile, the notice has raised many questions as to how the association has managed to get away without paying its dues so far despite being among the top tax defaulters in the city.
The CMC, according to sources, has set an ambitious target of collecting Rs 8 crore holding tax in 2015-16, almost double the amount it is likely to generate this financial year.
For this, the civic body has increased holding tax rates for commercial establishments and started fresh assessments for new institutions, besides setting up special squads for speedy tax collection which is one of its major sources of income.
Behera, Dey to take call on court cases
OOA secretary Asirbad Behera and its president Samir Dey have been empowered by the general body of OOA to take a final call on court-related matters of Barabati Stadium. According to sources, members have reposed their confidence in Behera at a time when he offered to resign in the face of allegations of misappropriation of rent collected from Barabati Palace and adjacent shops. Behera and Dey will decide on the course of action on behalf of OOA before the next hearing scheduled April 21, sources said. At a general body meeting held recently, members unanimously agreed Behera needs to stay put in his position for the improvement of sports in the state. The general body meeting also agreed not to discuss or make negative comments on land encroachment allegations surrounding Barabati as the case is in the Supreme Court. The meeting also pointed out that the roots of the land grab allegation dates back to 1965. The move to construct a boundary wall in 1965 by the then secretary Bhairav Mohanty went unchallenged back then. While a shopping complex was erected on land beyond the patta land of OOA, the fund collected from it was being spent for the welfare of sports in the state, members said.