Goodricke to challenge Bengal 'selami' levy

Goodricke Group Ltd plans to move court over payment of 'selami' in renewal of lease of land in tea estates to the government of West Bengal.

K S David, managing director of Goodricke, said at the company's annual general meeting, that some of the companies had already moved court and Goodricke would join them.

He said payment of selami, or lease rental based on informal valuation, was "against principles'.

According to the rules laid down by the government of West Bengal, the rate of payment has been fixed at Rs 9,000 per hectare.

Subsequently, the government relaxed payment norms and permitted payment in instalments over a 30-year period.

David said, two of the company's gardens in Darjeeling faced the demand for payment of selami.

No payment has been made and the company would approach the High Court if required.

He said the Indian Tea Association (ITA) would also oppose payment of selami.

ITA chairman C K Dhanuka confirmed that the tea was opposing the payment of selami but admitted the payment schedule of 30 years was a great relief.

The largest bulk tea company, Eveready, has also accepted the 30-year payment schedule.

An Eveready spokesperson said, "The company has accepted the rebate announced by the government of West Bengal."

The 30-year payment schedule was one of the recommendations made by the Sabyasachi Sen committee for improvement of the tea industry.

However, it is yet to receive all clearances from the state government. Dhanuka said the proposal has been placed before the government but has not been cleared as yet.

The committee suggested spreading the incidence of selami in case of lease renewals of tea gardens on transfer, in instalments spread over 30 years, with a moratorium on payment for the first two years.

The committee was set up the state government and headed by commerce and industry secretary, Sabyasachi Sen.