Ahmedabad municipal corp raises 149 cr tax bills against defunct mills

10 Dec 2021 CW Team

The Ahmedabad Municipal Corporation has raised Rs 149 crore cumulative property tax bills from 16 defunct mills in the city.

The Ahmedabad Municipal Corporation has written to official liquidators of 11 defunct mills, along with their tax dues for these 16 properties. These mills had shut 25 to 30 years back, and the AMC has been raising tax bills every year. Leading on the list is Calico Mills Ltd, founded by the Sarabhai family in 1888, which closed in 1998.

Ahmedabad Manufacturing and Printing own Calico Mills. Jainik Vakil, chairman of AMC’s revenue committee, told the media that they approached the official liquidators of these mills and asked them to consider their tax demand. Based on the list presented by the official liquidators, they have issued recovery demands of Rs 149 crore.

Whenever big firms that have properties like mill compounds or factories go into liquidation and are sold, the official liquidator has to estimate the due taxes and pay them. The revenue department’s pending tax claims comprise Rs 50.76 crore from Calico Mills, Rs 28.80 crore from The Commercial Ahmedabad Mills Co Ltd, Rs 33.16 lakh from Aryodaya Ginning Mills, Rs 18.5 crore from Aryodaya Spinning and Weaving Mills held by Sheth Mangaldas & Brothers, Rs 23.56 crore from Jubilee Mills, Rs 40.62 crore from Star of Gujarat Textile Mills Ltd, Rs 30.18 crore from Amruta Mills and Rs 10.59 crore from New Gujarat Synthetic among others.

Vakil said that the tax department additionally requested that one authority from the AMC be added to the committee created by the authority whenever a large property like a mill is liquidated.

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