AIADMK star hotel tax loot caused GCC losses in crores: DMK

CHENNAI: The ruling DMK of the Greater Chennai Corporation, at the council meeting on Friday, accused the previous AIADMK government of indulging in a multi-crore scam by reducing the property tax of several star hotels in Chennai, thereby benefitting the politicians and causing huge revenue loss to the cash-starved civic body.

“The previous government reduced the tax by 50 per cent and we have unearthed tax evasions and tax reductions in the case of six star hotels in Chennai during the checklist period 2018-2020, running into several crores,” K Dhanasekaran, head of accounts committee, told DT Next.

Dhanasekar, DMK councillor, who drew the attention of the council seeking a probe and collection of arrears said the data ascertained till now is just the tip of the iceberg. “Several star hotels in connivance with the AIADMK functionaries have been involved in the systematic scam, while a few errant officials are trying to cover it up. We have demanded the Corporation Commissioner to order a detailed probe in this regard,” Dhanasekaran said.

Earlier in the day, Dhanasekaran demanded the GCC send notices and collect the remaining tax amount from the hotels concerned.

“After analysing the property tax of Radisson Blu GRT hotel operating in Alandur, the semi-annual tax till the end of the 2018-2019 fiscal was mentioned as Rs 57,41,410. Later, it was reduced to Rs 19,43,025, almost 66% underestimated. It’s found the number of rooms in the hotel was reduced from 101 to 75. Even the room minimum charge was dropped from Rs 6,500 to Rs 2,500. The current room rent as per the hotel website is Rs 11,500,” Dhanasekaran informed the council.↔ Continued on P2

Special committee will investigate, says Commissioner

Similarly, the property tax of another hotel in Alandur, Vijay Park, has been reduced to Rs 5.18 lakh from Rs 6.56 lakh in the same fiscal. The half-year property tax for Hotel Hablis in Guindy was Rs 41.51 lakh, but only Rs 22.21 lakh payment was made. The half-yearly property tax for Park Plaza Hotel in Thoraipakkam is down from Rs 44.97 lakh to Rs 14.22 lakh. In the 2019-2020 fiscal, Holiday Inn Express paid a property tax of Rs 18.98 lakh instead of Rs 46.60 lakh. “All these changes were made with vested interests. There was a tax reduction for Hotel Novotel at Sholinganallur as well,” Dhanasekaran claimed. “A few more star hotels such as Vivanta in OMR, The Residency, and GRT Grand in T Nagar have also recorded drastic reductions in property tax.” Corporation Commissioner Gagandeep Singh Bedi said that specialised buildings such as hotels, theatres, hospitals and marriage halls have been levied property tax on a commercial basis. Some of them have been charged less and some more. However, a special committee will be set up to investigate and take action.