SMC recovers 4.5 cr dues from cellphone companies

SURAT: Local civic body has recovered more than Rs 4.5 crore from the owners of 819 mobile towers in the city as the property tax till date against the demand of Rs 9.5 crore till date.
Legal battle going on between some of the cellphone companies and civic body on the issue of very high tariff and right of a civic body to recover property tax from cellphone companies under the provisions of Indian Telegraph Act is also challenged.
The case is going on in the high court from last January 2010. However, high court has asked the civic body to recover 50 per cent of the actual demand and those who pay up this amount should not be harshly punished.
Some of the cellphone companies have submitted to the high court that as per the Telegraph Act, local authorities have no right to collect any type of taxes on mobile towers. Surat Municipal Corporation (SMC), however, argued that when this act was made there were no mobile towers and when BPMC Act was made then too cellphones were non-existent. So, law needs amendments and following this high court gave a directive that civic body can recover half the demand amount and if these mobile tower companies don't pay half the amount they will face action from SMC.
"We had major problems from two telecom companies, Reliance and BSNL. SMC has made recovery of Rs 2.06 crore from Reliance and after high court directive of 50 per cent payment, till date they have paid Rs 44.53 lakh. SMC has also raised demand of Rs 24 lakh against BSNL," said Sharad Mehta, assistant commissioner (Finance) to TOI.
There are 819 mobile towers in the city of 13 different telecom players and SMC is planning strict action against those who have not followed the court order of paying up 50 per cent of the actual demand raised.
SMC started recovering property tax from these towers after it implemented area-based assessment pattern and placed mobile towers in special category.