NMC SLAPS RS.1.1-CR PENALTY ON ICICI BANK FOR EVADING OCTROI

The Nagpur Municipal Corporation (NMC) has imposed a penalty of Rs 1.10 crore on ICICI Bank for evading octroi on sale of gold coins worth Rs.10 crore. The country's largest private sector lender started selling gold coins through its branches in 2003 but had been evading octroi as it was brought to the city from Mumbai. ICICI Bank was accordingly served notice to pay octori at 1 percent and ten times as penalty under relevant sections of the NMC Act. After due process, including hearing of appeal, the NMC finally decided to recover Rs 1.10 crore from ICICI Bank. 

The bank accordingly deposited Rs 55 lakh or 50 percent of amount and sought time to deposit the remaining amount within 15 days.

Meanwhile, the NMC has also realised that other bankers such as Axis Bank, HDFC Bank, Bank of Baroda, Punjab National Bank, Corporation Bank, Indian Bank and Kotak Mahindra Bank were also in the business of selling gold coin. Out of these, Kotak, Bank of Baroda and Corporation Bank have gone to appeal which is being processed by NMC.


Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/NMC-slaps-Rs-11-cr-penalty-on-ICICI-Bank-for-evading-octroi/articleshow/5599506.cms