NMMC slaps Rs. 1.1 crore fine on ICICI Bank for octroi evasion

By | February 25, 2010

The Nagpur Municipal Corporation (NMC) has slapped a fine of Rs 1.10 crore on ICICI Bank for octroi evasion on the sale of gold coins valued at Rs. 10 crores, according to NMC.

ICICI Bank commenced selling gold coins via its branches in 2003 but has been avoiding paying octroi, since they were brought into the city from Mumbai, according to NMC assistant commissioner–octroi department Milind Meshram, who led the investigation of this case.

Additional deputy commissioner Ajay Ramteke said that ICICI Bank was therefore doled out notice to pay octroi at 1% and 10 times as fine under appropriate sections of the NMC Act.

After appropriate process, including hearing of appeal, the NMC ultimately chose to recover Rs 1.10 crore from ICICI Bank, he said.

The bank then deposited Rs 55 lakh or 50% of amount, yesterday and has asked for time to deposit the outstanding amount within 15 days, Ramteke said.

Meanwhile, the NMC has also noticed that other bankers like Axis Bank, HDFC Bank, Bank of Baroda, Punjab National Bank, Corporation Bank, Indian Bank and Kotak Mahindra Bank were also involved in the business of selling gold coin.

Amongst these, Kotak, Bank of Baroda and Corporation Bank have made an appeal which is being looked into by NMC, Ramteke said.

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