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The Times of India
The Times of India
National
TNN

AMC demands Rs 149 crore tax dues from defunct city mills

AHMEDABAD: The civic body has raised cumulative property tax demands of Rs 149 crore 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 closed 25 to 30 years ago and the AMC has been raising tax bills every year. Prominent on the list are Calico Mills Ltd, established by the Sarabhai family in 1888, which shut in 1998. Calico owes AMC Rs 50.76 crore. Calico Mills is owned by Ahmedabad Manufacturing and Printing.

“We approached the official liquidators of these mills and requested them to consider our tax demand. Based on the list provided by the official liquidators, we have issued recovery demands amounting to Rs 149 crore,” said Jainik Vakil, chairman of AMC’s revenue committee.

“Whenever large companies that have properties such as mill compounds or factories go into liquidation and are sold, the official liquidator has to calculate the due taxes and pay them,” Vakil said.

The revenue department’s pending tax claims include Rs 50.76 crore from Calico Mills, Rs 18.5 crore from Aryodaya Spinning and Weaving Mills owned by Sheth Mangaldas & Brothers, Rs 33.16 lakh from Arodaya Ginning Mills, Rs 30.18 crore from Amruta Mills, Rs 23.56 crore from Jubilee Mills, Rs 28.80 crore from The Commercial Ahmedabad Mills Co Ltd, Rs 40.62 crore from Star of Gujarat Textile Mills Ltd and Rs 10.59 crore from New Gujarat Synthetic among others.

Vakil said the tax department also requested that one official from the AMC be included on the committee formed by the authority whenever a large property such as a mill is liquidated.

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