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Hero MotoCorp, India's largest motorcycle producer, has approached the Board of Revenue for relief against a penalty of Rs 111 crore imposed on it by Haridwar district authorities for allegedly evading stamp duty related to the lease deed of its manufacturing plant here.
The move follows controversy over the registration of the lease deed of the plant at 2006 circle rates, which allegedly led to a stamp duty loss of Rs 254 crore to the state exchequer.
When contacted, a Hero MotoCorp spokesperson said, "The DM (district magistrate)'s order has been stayed by the Board of Revenue; the next hearing will be held in the first week of August."
In February this year, the company had registered the land deed of its 214-acre Haridwar industrial plot at 2006 circle rates, allegedly due to a relaxation provided by the state government.
Leader of Opposition in the Uttarakhand state Assembly, Ajay Bhatt, sought the state government should go for fresh registration of the lease, at the circle rates for this year. "The circle rates at Haridwar industrial estate in 2006 were Rs 1,000 per sq metre. But now, the rates have shot up to Rs 3,800 per sq metre, which creates a big difference in terms of stamp duty loss," he said.
After the state government had drawn flak in the matter, Chief Minister Harish Rawat had asked Haridwar District Magistrate D Senthil Pandian to carry out an inquiry into the case. "After holding the inquiry, Haridwar DM Pandian imposed a penalty on Hero MotoCorp," the chief minister told Business Standard .
But the opposition has said this penalty is too little. "The penalty of Rs 111 crore is much less than the total loss of Rs 254 crore. We are demanding a CBI (Central Bureau of Investigation) probe into the whole affair," Bhatt said.
