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Collectorate eyes Rs 50 cr from diggers, builders see red

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Ajay Khape

Posted: Mar 07, 2008 at 2333 hrs IST

Pune, March 6 Cashing in on the large-scale construction work on vacant land in the city, the district collectorate has served notices to 200 private builders, seeking royalty of Rs 50 crore for excavating under its jurisdiction.

However, the Promoters and Builders Association of Pune (PBAP) has moved Bombay High Court challenging the collectorate notice.

“There is large-scale land excavation in and around city. Those involved in this work should pay royalty for it as per the government norms,” said additional district collector Vasant Vaidya.

He said notices have been served to all the developers and builders to pay the royalty fee as per the government norms. A few of them, he said, have approached the court challenging the notices.

District mining officer S V Kalyankar said 200 notices were served to various builders urging them to pay Rs 50 crore for land excavation.

As per the Mines and Minerals (Regulation and Development) Act, 1957, the government has notified mud, stones and sand as minerals. The Maharashtra Land Revenue Code, 1966 section 48 (1) says the government has the right on minerals available in any land.

“Those excavating land have to take advance permission for the purpose along with paying the royalty, failing which triple the amount of royalty is collected as penalty as per section 48(7),” said Kalyankar.

In a recent case, a city court gave its ruling in favour of a builder challenging the notice, he said, adding that the same court had refused to interfere in the matter.

“We will bring to the notice of the high court the disparities in the ruling by local court on similar matters,” Kalyankar said. The local court has ruled that the government cannot seek royalty for excavation of any private land. The high court will be hearing the matter on March 20.

Developers and builders are not the only ones who have been asked to pay royalty. The district collectorate has sent a letter to Pune Municipal Corporation as well, urging it to ensure that the contractors carrying out its development work pay royalty. “We have received letter from the collector office seeking royalty for excavation being done for various development projects in the city,” Municipal Commissioner Praveensinh Pardeshi said.

“The PMC, in its agreement with contractors, has already made payment of royalty mandatory for excavation work as per the government norms,” he said.

“The civic administration will withhold the disbursement of funds to the contractor for the work till the royalty is paid by them. Otherwise we will deduct the amount from the project cost.”

Kalyankar said the only exemption in royalty on digging land has been give to PMC for the work relating to removal of silt in the river after the civic body assured that it will be used as manure for agriculture in the nearby area.

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Royalty by shirish on 25 Jul 2011

If corporation is taking Royalty for excavation then is it necessary to pay royalty again to collector/tahasil etc?

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