Flight operation may be stopped at Hubli airport

Flight operation may be stopped at Hubli airport
The Newindpress.com

Sunday December 24 2006 14:02 IST

HUBLI: Flight operation may be stopped at Hubli airport which is under upgradation process to meet international standards by Airport Authority of India, from next February 1, as Hubli Dharwad Municipal Corporation (HDMC) is all set to recover two fire tenders, the basic equipment for flight operation to make up tax dues of AAI, Hubli.

HDMC slapped a ‘final’ notice on AAI, Hubli asking it to pay property tax amounting to Rs 44,35,873, including the arrears for the last 12 years.

HDMC sources said that as per the KMC Act and as per the Supreme Court rulings, the HDMC already expressed its inability to give any exemption as sought by AAI.

Stating that it was inevitable the HDMC served a notice on AAI in August informing that it could not give any time and by September 30, if the tax was not paid, either in full or at least in part that is 50 per cent, the HDMC would recover the property tax, which may include attachment of moveable properties of the AAI, in Hubli airport.

On condition of anonymity, a senior officer of AAI, Hubli, said that Hubli airport had represented this case to the State Government requesting it to waive the dues and exempt it from payment of property tax as the airport was a loss making unit.

It would cost Rs 7-8 lakh a month to maintain and operate two flights, he said adding that “Further we believe that standards adopted by HDMC to levy tax are not realistic. It is a mistake since the HDMC awakened only after 2004 to serve notice for non-payment of tax.”

HDMC Commissioner P Manivannan clearly stated that he extended the date again till January 31 to pay dues as HDMC learnt that case was under consideration of the State Government. Failing which HDMC, in first phase, would recover two fire tenders and a jeep owned by AAI.

In the next phase it would move the court seeking recovery of immovable property of AAI, he said.

Meanwhile, sources said that District incharge and Revenue Minister Jagadish Shettar was seriously considering to waive the tax dues, otherwise ‘passiveness’ of the State Government might send wrong signals to private operators like King Fisher Airlines who wanted to begin their services here from January.