The Hindu : Kerala / Kochi News : Smart City: Tecom claims SEZ benefits

Online edition of India's National Newspaper
Thursday, Dec 13, 2007
ePaper

Kerala

Kerala - Kochi

Smart City: Tecom claims SEZ benefits

Staff Reporter

Project land has SEZ status

Decision on stamp duty waiver within 10 days
Registration of two more plots completed

KOCHI: A decision on the demand by Tecom, promoters of the Smart City project, for waiver of stamp and registration duties will be taken within 10 days in consultation with legal experts and taking into account the State government’s position on the issue, District Collector A.P.M. Mohammed Hanish has said.

He was talking to reporters here on Wednesday after a hearing with representatives of Tecom. The Collector said that the advice of the Advocate-General would also be sought on the matter, if necessary.

Two Bangalore-based lawyers represented Tecom in the hearing. They presented the arguments based on which the company sought a favourable decision on the matter. Officials of Infopark also attended the hearing.

“We have presented our case and hope for a favourable decision from the authorities,” they said.

The stamp and registration duty for the deal came to around Rs.12 crore. Explaining the arguments presented by the company, the Collector said the 246 acres earmarked for the Smart City project had received, in principle, Special Economic Zone (SEZ) status from the Union Commerce Ministry. They argued that as such the company was entitled to the benefits under the SEZ Act, he said. A formal declaration as SEZ was expected once the land was fully transferred to its name. As this remains a mere formality, the company sought for due benefits under SEZ.

The company representatives also drew attention to a letter written by the Development Commissioner of SEZ to the registrar ahead of the signing of the lease agreement stating that it was entitled to SEZ benefits, the Collector said.

They also pointed out the State government notification of 2004 under which SEZ developers were entitled to various benefits. However, the Registration Department was of the opinion that the Central notification of 2007 had left the State notification invalid.

As per the Central notification, developers of software technology parks were no longer entitled to any special benefits. The company representatives said that while the benefits to software technology parks remained withdrawn, the SEZ developers were still bestowed with the benefits and hence they were eligible for the benefits.

Meanwhile, registration of two plots, part of the remaining more than 11 acres, which were yet to be handed over to Tecom, was held on Wednesday. The handing over of this segment of land was delayed as its inhabitants had to be rehabilitated.

Printer friendly page
Send this article to Friends by E-Mail

Kerala