Hyderabad: There seems to be an ongoing tussle between the Metro Rail developer L&T and GHMC over various taxes levied on the former. L&T, which was seeking various tax and fee exemptions and electricity at special tariff from the government, might have to pay property tax now.
The GHMC recently issued notices to Hyderabad Metro Rail Ltd. to pay property tax for the built-up area at Miyapur depot, Uppal depot and Quthubullapur.
“We have issued notices to HMRL to pay property tax to the tune of Rs 1 crore for the Metro property at Uppal, Miyapur depot and also Quthubullapur, where L&T has taken land on lease from HMT and set up manufacturing units,” said S. Hari Krishna, additional commissioner (revenue) GHMC.
Asked about the exemption that was to be given to L&T, he said, “A clause in the concession agreement between the government and L&T states that though the land belongs to the government, the property built on the land is liable for property tax and has to be paid by the concessionaire. In this case, L&T is the concessionaire," said Mr Hari Krishna.
However, the infrastructure giant says as per the concession agreement, the government is supposed to provide resources at concessional rates. “The government is supposed to give us certain concessions. And the notices issued are to HMRL, and it is between the government and the HMRL to resolve the issue,” said V.B. Gadgil, chief executive and MD of Metro Rail (Hyderabad).
HMRL MD N.V.S Reddy, said, “Paying of taxes and providing power at special rates are to be dealt by different departments of the government. These things will be discussed, and we will arrive at a decision.”
