Home India Tariff Authority for Major Ports The powers conferred under Section 49 of the Major Port Trus...
Date: 2015-07-14 Category: Extra Ordinary State: Union Government Country: India

The powers conferred under Section 49 of the Major Port Trusts Act, 1963 (38 of 1963), the Tariff Authority for Major Ports hereby disposes of the Reference received from the Kolkata Port Trust (KOPT) for amendment to its Schedule of Rent for Land and Buildings at Kolkata and Haldia, as in the Order appended hereto.

Issued by Tariff Authority for Major Ports · NOT available

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Executive Summary & Key Takeaways

Executive Summary: This document addresses a reference from the Kolkata Port Trust (KOPT) regarding amendments to its Schedule of Rent for Land and Buildings at Kolkata and Haldia. It pertains to long-term leases predating the 2011 rent schedule and the recovery of Non-refundable and Non-adjustable (NRNA) premiums. The order approves the insertion of a footnote to the rent schedule, effective from April 7, 2011, to account for these premiums. Key Points / Main Content: Background and Context: * KOPT requested an amendment to its Schedule of Rent for Land and Buildings at Kolkata and Haldia. * A previous order (January 19, 2011) addressed the revision of the rent schedule but omitted a specific footnote. * The current order resolves the omission concerning long-term leases with NRNA premiums. Decision: * The Tariff Authority for Major Ports (TAMP) approves the insertion of a footnote to the Schedule of Rent for Kolkata Dock System (KDS). * Effective Date: April 7, 2011 (retroactive to the original order's implementation date). Footnote Content: * The footnote addresses the escalated rent rates for existing 15-year long-term leases granted with a premium equivalent to four years' rent. * Rent revision and refixation after five years will compare the escalated rent with the updated Schedule of Rates (SOR) after reducing the SOR by 24%. * If the reduced SOR rate is higher, that rate applies; if lower, the escalated rent rate continues. Impact Analysis: Premier Tea Limited (PTL) and Similarly Situated Lessees: * Impact: The footnote's inclusion provides a mechanism to avoid double taxation for lessees who paid an NRNA premium upfront. PTL and other lessees had contested KOPT's application of the SOR without the 24% reduction. * Action Required: PTL and similar cases can have their rent refixed considering the 24% reduction in SOR, as per the footnote. Kolkata Port Trust (KOPT): * Impact: KOPT is directed to implement the approved footnote in the KDS rent schedule. * Action Required: KOPT must apply the 24% reduction when refixing rents for applicable long-term leases, starting from April 7, 2011.

Key Entities Referenced

Tariff Authority for Major Ports: An authority exercising powers conferred under Section 49 of the Major Port Trusts Act, 1963. Major Port Trusts Act, 1963: A legal act under which the Tariff Authority for Major Ports exercises its powers. Kolkata Port Trust: An entity also referred to as KOPT, that submitted a reference for amendment to its Schedule of Rent for Land and Buildings. Kolkata, West Bengal: A city in West Bengal where the Kolkata Port Trust has land and buildings for which a Schedule of Rent is being amended. Haldia, West Bengal: A city in West Bengal where the Kolkata Port Trust has land and buildings for which a Schedule of Rent is being amended. T.S. Balasubramanian: Member Finance of the Tariff Authority for Major Ports. Chandra Bhan Singh: Member Economic of the Tariff Authority for Major Ports. Premier Tea Limited: A long term lessee of Kolkata Port Trust that raised objections to the rent refixation.
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fdjk;k iV~Vs dh vof/k ds nkSjku izpfyr fdjk;k vuqlwph ds vuqlkj fdjk;s ds Lrj ij ekaxk tk,xkA^^ (ii) Hkwfe uhfr fn’kkfunsZ’k] 2004 dh ‘kq:vkr ds ckn] dsvksihVh izLrkfor njeku ds ek/;e ls ,uvkj,e, izhfe;e yEcs le; rd olwy ugha fd;k tk ldsxkA 4 o”kksZa ds fdjk;s ds ,uvkj,u, izhfe;e dh olwyh ugha djus ds fy, dsvksihVh jktLo esa fxjkoV dks de djus ds fy,] Vh,,eih ds le{k dsvksihVh dk izLrko Fkk fd 32 izfr’kr ds dkjd }kjk njeku dh izLrkfor nj dks tSd vi fd;k tk,A dsvksihVh }kjk viuk;k x;k ;g fl)kar vkSj dk;Zi)fr dsvksihVh }kjk Lohdkj dh xbZ Fkh vkSj ;g dsMh,l] dsvksihVh ds fy, Vh,,eih }kjk fu/kkZfjr vuqlwph fdjk;k ¼,lvksvkj½ esa rnuqlkj n’kkZ;k x;k Fkk vkSj bl izkf/kdj.k ds vkns’k fnukad 19 tuojh 2011 esa vf/klwfpr fd;k x;k FkkA (iii) nh?kkZof/k iV~Vk/kkjh] ftUgsa ekfld@okf”kZd fdjk;k ds vykok 4 o”kksZa ds fdjk;s dk ,uvkj,u, izhfe;e vnk djuk Fkk] fdjk;s ds iquZfu/kkZj.k ds iz;kstu ds fy, izR;sd 5 o”kksZa ds ckn njeku ls iV~Vk fdjk;s dh rqyuk djuh gksxh tks dsvksihVh ds 2011 njeku ds ‘kq:vkr ds ckn vk,axsA pwafd njeku izhfe;e ds rRo esa igys ls ykxw gS] ;fn nh?kkZof/k iV~Vk/kkjh] tks iV~Vk ysus ds le; 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dk :[k Hkh fd;k FkkA mUgksaus nkok fd;k gS fd pawfd mUgksaus ekfld fdjk;s ds Hkqxrku ls vf/kd 2004 esa iV~Vs dh ‘kq:vkr ds le; ij 4 o”kkasZ ds fdjk;s ds led{k ,uvkj,u, izhfe;e dk Hkqxrku fd;k Fkk] mUgsa dsvksihVh ds izpfyr njeku ¼07&04&2011 ls ykxw½ tksfd ,uvkj,u, izhfe;e ds iSjkehVj ds lek;kstu ds fy, 32 izfr’kr ds rRo esa LokHkkfod Fkk] ij 15&04&2014 ls fdjk;s dk Hkqxrku djus ls NwV iznku dh tkuh pkfg,A muds vuqlkj] dsvksihVh dk fu.kZ; dVq vkjS muij nksgjk >qdko gSA blfy,] ihVh,y us dsvksihVh ds fu.kZ; dh leh{kk djus vkSj bleas 24 izfr’kr rd dVkSrh djus ds ckn vkjS njeku ds vuqlkj ugha] njeku esa 15&04&2014 ls muds }kjk ns; fdjk;s dh rqyuk djus dk vuqjks/k fd;k x;k FkkA (viii) ;s ,uvkj,u, izhfe;e okys 107 iV~Vs gSaA rFkkfi] mi;qZDr iV~Vkas eas ls] mueas ls dqN ds fdjk;s dh 5 o”khZ; leh{kk 07&04&2011 ls igys iM+rh gS vkSj os ekeys vizHkkfor jgus pkfg,aA 5 o”khZ; fdjk;k leh{kk vkSj mu iV~Vksa dk iquZfu/kkZj.k] tks 07&04&2011 ds ckn ns; gksxk] nks Jsf.k;ka ‘kkfey gSa] vFkkZr~%& (d). 5 o”kksaZa ds ckn izFke leh{kk vkSj 10 o”kksZa ds ckn nwljh leh{kk ds nkSjku dqN iV~Vkas dk fof/kor~ of/kZr iV~Vk fdjk;k izpfyr ,lvksvkj ls mPprj gks ldrk gS vkSj mu ekeykas eas] iV~Vk/kkfj;kas dks iV~Vk foys[k esa mfYyf[kr okf”kZd o`f) ds lkFk iV~Vk fdjk;k vnk djuk tkjh j[kuk gksxkA ([k). vU; 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izpfyr izfØ;k ds vuqlkj 15 o”kksZa vFkkZr~ 15 o”kksZa ds fy, lEiw.kZ fdjk;k grs q mRrj&fnukafdr pSdkas lfgr 2004 esa LFkk;h <kaps dh ykxr dk Hkh Hkqxrku fd;k FkkA (iii) iV~Vk ifjfLFkfr ds vuqlkj] dsvksihVh rRle; izHkkoh fdjk;k vuqlwph ¼,lvksvkj½ rd izR;sd 5 o”kksZa ds ckn iV~Vk fdjk;s dh leh{kk djus ds fy, gdnkj gS ;fn ,slk ,lvksvkj rRle; ns; iV~Vk fdjk;s ls vf/kd jgrk gSA (iv) dksydkrk iRru U;kl ds fy, fdjk;s ds la’kks/ku grs q iz’kqYd vkns’k fnukad 19@01@2011 esa] ;g ns[kk x;k gS fd dsvksihVh ds fofHkUu {ks= ds fy, ,lvksvkj dh x.kuk djrs le;] Vh,,eih us 15 o”kkZas ds iV~Vs ds fy,] tksfd 1996 ls fy;k tk jgk gS] 4 o”kksZa ds fdjk;s ds led{k izhfe;e ysus ds fy, vuqefr ugha fn, tkus ij dsvksihVh dks gksus okys uqdlku dh {kfriwfrZ djus ds fy, fufofnr fdjk;k ¼d`Ik;k ijS k 11(vii) ¼[k½ ,oa ¼x½ ns[ksa½ ls vf/kd 32 izfr’kr rd fdjk;s eas o`f) dh vuqefr nh FkhA (v) ;g Hkh ns[kk x;k gS fd dsvksihVh us fdjk;k la’kks/ku ds fy, Vh,,eih dks viuk izLrko vxzsf”kr djrs le;] izLrkfor fd;k gS fd os ekStwnk iV~Vk/kkjh tks izhfe;e ¼viÝaV /kujkf’k½ ds :Ik esa 4 o”kksZa ds fdjk;s dk Hkqxrku djrs gq, 15 fnukas dk iV~Vk igys gh izkIr dj pqdk gS] u, ,lvksvkj esa 32 izfr’kr dh dVkSrh djus dh vuqefr nh tk,xh tc mudk fdjk;k la’kks/ku izR;sd 5 o”kksZa ds ckn fd;k tkrk gSA (vi) rFkkfi] 19@1@2011 dks tkjh fd, x, dsvksihVh Hkwfe gsrq fdjk;s ds la’kks/ku ds fy, iz’kqYd vkns’k dsvksihVh ds ,ls s izLrko ij ekSu gSA (vii) dsvksihVh us 32 izfr’kr dh vuqefr fn, fcuk u;k ,lvksvkj vf/kjksfir djus vkSj iV~Vk fdjk;k la’kksf/kr djus dh ekax dh gS] tcfd mUgksaus ,lvksvkj ds la’kks/ku dh ekax fd, tkus ds le; Vh,,eih dks ogh ‘krsZa izLrkfor dh FkhaA blds ifj.kkeLo:Ik ihVh,y ds ekeys esa ns; fdjk;s ij 2014 esa yxHkx 106 izfr’kr rd iV~Vk fdjk;s dh o`f) gqbZ FkhA (viii) ihVh,y us i= fnukad 14 uoEcj 2014 }kjk dsvksihVh ds lkeus bl fcUnq dks mBk;k Fkk] ijUrq dsvksihVh us mldh vihy [kkfjt dj nh Fkh] tcfd ;g Lohdkj fd;k x;k Fkk fd muds nkos lgh gSa vkjS os u, ,lvksvkj eas 32 izfr’kr dh ,slh fj;k;r ds fy, ;ksX; gaSA dsvksihVh }kjk n’kkZ;k x;k dkj.k gS fd pwafd Vh,,eih dk vkns’k fnukad 19@1@2011 32 izfr’kr dh ,ls h dVkSrh dks ugha n’kkZrk gS] os v{ke gaSA (ix) ,lvksvkj esa 32 izfr’kr dVkSrh ds muds lgh nkos ds ckjs eas ihVh,y ds nkos dks Lohdkj djrs gq, dsvksihVh ds ,sls nkos dks ns[kus ij] dsvksihVh dks Vh,,eih ds iwoZorhZ vkns’k la- Vh,,eih@53@2003&lkekU; fnukad 28 vxLr 2003 ds ckjs eas crk;k x;k Fkk] tksfd vf/kdre njksa ds :Ik esa ,lvksvkj njksa ij fopkj djus ds fy, lHkh egkiRrukas dks igys gh ‘kfDr iznku dj pqdk gS D;ksafd vf/kdre njsa vksj iRru ,lvksvkj ij dksbZ fj;k;r nsus ds fy, Lora= gSa ;fn os ;ksX; vkSj lgh ekeys gSaA (x) dsvksihVh us ihVh,y ds i= dk tokc ugha fn;k Fkk vkSj cSBd ds nkSjku ihVh dks fnlEcj 2014 ls ebZ 2015 vof/k ds fy, dqy jkf’k #0 24]32]448@& ds ekax uksfVlksa dh vnk;xh djus dh lykg nh xbZ Fkh] D;kasfd Hkqxrku ugha fd, tkus ij Hkkjh C;kt yx jgk gSA (xi) mi;qZDr ds en~nsutj] bl izkf/kdj.k ls ;g irk yxkus dk vuqjks/k gS fd D;k ,ls k vkns’k la- Vh,,eih@53@2003&lkekU; fnukad 28 vxLr 2003 lHkh ,lvksvkj vf/kdre njksa ds :Ik eas Lohd`r dj jgk gS vkSj ,lvksvkj ij fj;k;rsa Lohd`r djus ds fy, Lor=a gS] oS/k gS vFkok ugha] ;fn os ,slk pkgsa] ;ksX; gSA 4-1- ihVh,y }kjk fd, x, fuosnuksa ds laca/k esa] ;g crk;k x;k gS fd o”kZ 2011 esa dksydkrk rFkk gfYn;k eas dsvksihVh dh Hkwfe vkSj Hkouksa ds fy, fdjk;s dh vuqlwph dh leh{kk ds nkSjku] dsvksihVh us dsMh,l ds fy, izLrkfor fdjk;k vuqlwph ds fupys fgLls esa ikn fVIi.kh :Ik esa ;g ,d fVIi.kh izLrkfor dh Fkh fd ekStwnk iV~Vksa ds fy, tks pkj o”kksZa ds fdjk;s ds led{k izhfe;e dh olwyh ij 15 o”kksZa dk nh?kkZof/k iV~V Lohdkj fd;k x;k Fkk] njsa 32 izfr’kr rd vuqlwfpr fdjk;s esa dVkSrh djrs gq, mlds vkcaVu dh rkjh[k ls ikap o”kksZa ds ckn ubZ vuqlwph ls rqyuk dh tk,xh vkSj rc rqyuk dh tk,xhA 4-2- pwafd izLrkfor fVIi.kh dsvksihVh vkSj lac) iV~Vk/kkfj;kas ds chp gq, ekStwnk iV~Vk djkjksa dh lqfo/kk ij fn[kkbZ nrs h gS] blfy, dsvksihVh ls fLFkfr Li”V djus dk vuqjks/k fd;k x;k FkkA vkns’k fnukad 19 tuojh 2011 ds iSjk 7 ds v/khu nh xbZ rkfydk esa ;Fkk izfrosfnr] dsvksihVh us izR;qRrj fn;k Fkk fd ekStwnk iV~Vs ds ekeys esa tksfd izhfe;e ds :Ik esa 4 o”kksZa dk fdjk;k izkIr djus ds ckn 15 o”kkZas dh vof/k ds fy, igys gh iznRr fd;k x;k gS] ,d [kaM gS fd izR;sd 5 o”kksZa ds ckn] iRru U;kl ds ikl ;g vf/kdkj lqjf{kr gksxk fd og rRle; izHkkjh fdjk;k vuqlwph ¼,lvksvkj½ rd iV~Vk fdjk;k dh leh{kk vkSj iquZfu/kkZj.k dj ldrk gS] ;fn ;g vf/kd gksrk gSA tSlkfd Vh,,eih dks izLrqr dh xbZ izLrkfor fdjk;k vuqlwph esa gS] iRru Hkwfe dh mPpre fufonk nj ls fdjk;ksa ij igqapus ds fy, vuqlfjr dk;Zi)fr;ksa esa ls ,d gSA mu ekeyksa esa] mPpre fufonk nj tks 15 o”kksZa dh vof/k esa leku :Ik ls forfjr djus ds fy, 1-32 ¼vFkkZr~ 32 izfr’kr o`f)½ ds dkjd }kjk vkSj o`f) yh xbZ gSA iV~Vk/kkfj;ksa dks igys ls Hkqxrku fd;k x;k ,ls k izhfe;e nksgjs VSDl okyk gksxk ;fn mudk fdjk;k izLrkfor fdjk;k vuqlwph ds vuqlkj la’kksf/kr fd;k tkrk gS ftlesa 32 izfr’kr o`f) igys ls ‘kkfey dh xbZ gSA ,ls s nksgjs VSDl ls cpus ds fy,] ,slh fVIi.kh izLrkfor dh xbZ gSA rFkkfi] Vkbiys[ku =qfV gS & mDr dVkSrh 24 izfr’kr dh nj ls gksxh vFkkZr~ leh{kk ds le; vkSj 5 o”kkZsa ds ckn ekStwnk iV~Vk/kkfj;ksa ds fy, ekStwnk iV~Vk fdjk;s dh leh{kk vkjS iquZfu/kkZj.k ds le;] 24 izfr’kr dh NwV ykxw djrs gq, izLrkfor fdjk;k vuqlwph ls rqyuk dh tk,xhA dsvksihVh us 24 izfr’kr dVkSrh ij igqapus ds fy, x.kuk nh FkhA 4-3- tSlkfd Åij crk;k x;k gS dsvksihVh }kjk fd, x, fuosnu ds laca/k esa] ;g dguk gS fd o”kZ 1996 eas ljdkj }kjk vuqeksfnr dsMh,l esa Hkwfe vkjS Hkouksa ds fy, rRle; ekStwnk fdjk;k vuqlwph dh fVIi.kh 2¼d½ ds vuqlkj] dsvksihVh dks] 15 o”kkZas dh vof/k ds nh?kkZof/k iV~Vkas ds ekeys eas] 4 o”kksZa ds fdjk;s ds led{k xSj&okilh;ksX; xSj&lek;kstu;ksX; viÝaV izhfe;e laxzghr djuk FkkA 2010 ds Hkwfe uhfr fn’kkfunsZ’kksa esa okf”kZd iV~Vs ds ekeys esa viÝaV izhfe;e dk laxzg.k fofufnZ”V ugha fd;k x;k FkkA blfy,] izLrkfor fdjk;k vuqlwph eas] dsvksihVh us viÝaV izhfe;e dk laxzg.k fMLisal djus dk izLrko fd;k FkkA bl izdkj] ekfld fdjk;ksa ds lkFk viÝaV izhfe;e olwyh djus dh rRle; ekStwnk i)fr ds foijhr] la’kksf/kr i)fr ds vuqlkj dsvksihVh dks dsoy ekfld fdjk;ksa ls vtZu gksuk FkkA blfy,] ekStwnk vkSj izLrkfor O;oLFkk ds chp rjg rjg dh rqyuk djus ds fy,] dsvksihVh us rc viÝaV izhfe;e ykxw djus dh ifjdYiuk dh FkhA bl laca/k esa] ;g ns[kk x;k Fkk fd dsvksihVh] ¼dsvksihVh ds tuojh 2011 vkns’k esa ;Fkk ppkZ dh xbZ½ x.kukvksa ds vk/kkj ij 1-32 ds dkjd ij igqapk Fkk vkSj v|ru dh xbZ fufonk ewY; esa o`f) dh Fkh vkSj bl izdkj fufonk ewY; ds vk/kkj ij fdjk;kas ij igqapk FkkA 4-4- ml le; bl izkf/kdj.k }kjk fy, x, er ds vk/kkj ij] iRru U;kl ds fy, ;g mi;qDr gksxk fd og ljdkjh fn’kkfunsZ’kksa esa fn, x, lHkh fodYiksa ds v/khu cktkj ewY; dk fu/kkZj.k djs vkSj ml ,d ds vk/kkj ij iV~Vk fdjk;kas eas foiFku djs tks mlds fy, lcls vf/kd ykHknk;d gks] fu/kkZfjr fd, x, iV~Vk fdjk;ks esa ls mPpre iV~Vk fdjk;s tksfd iRru ds mRre foRrh; fgr eas gksxk] vuqeksfnr fd;k x;k FkkA rnuqlkj] ;g ns[kk x;k Fkk fd vf/kdka’k ekeyksa esa] fufonk n`f”Vdks.k ds vk/kkj ij foifFkr iV~Vk fdjk;s mPpre Fks vkSj bls vuqeksfnr fd;k x;k FkkA4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] 4-5- pwafd fufonk n`f”Vdks.k ij vk/kkfjr fdjk;s ¼tks dsvksihVh }kjk viÝaV izhfe;e ds uqdlku dks Bhd djus ds fy, 32 izfr’kr dk izhfe;e dkjd ykxw fd;k Fkk½ vuqeksfnr fd, x, Fks] blfy, dsvksihVh }kjk izLrkfor fVIi.kh mls ekStwnk iV~Vksa] tks foifFkr fdjk;ksa ds lkFk pkj o”kksZa ds fdjk;s ds led{k izhfe;e dh olwyh ij 15 o”kksZa dk nh?kkZof/k iV~Vk iznku fd;k x;k Fkk] mlds vkcaVu dh rkjh[k ds ikap o”kksZa ds ckn] vuqlwfpr fdjk;s eas 24 izfr’kr dVkSrh djrs gq,] ,sls iV~Vk/kkfj;ksa dks jkgr nsrs gq,] }kjk Hkqxrku fd, tk jgs fdjk;ksa dh rqyuk djus eas leFkZ cukus ds fy, fd;k x;k gS ftls ‘kkfey fd;k x;k gSA 4-6- rFkkfi] mDr fVIi.kh ds laca/k esa dsvksihVh ls Li”Vhdj.k ekaxus ds ckotwn] tuojh 2011 eas ikfjr dksydkrk vkSj gfYn;k esa dsvksihVh dh Hkwfe vkjS Hkouksa ds fy, fdjk;k vuqlwph dh leh{kk djus ls lacaf/kr vkns’k esa bl ekeys ij dk;Zokgh ugha dh xbZ gSA ;g mDr fVIi.kh dks ‘kkfey ugha fd, tkus ds lanHkZ esa gS fd dsvksihVh vkSj ihVh,y us gekjk :[k fd;k gSA 4-7- ml le; dsvksihVh }kjk fd, x, fuosnuksa ls] ;g ns[kk x;k gS fd dsvksihVh us ml le; vius 15 o”khZ; nh?kkZof/k iV~Vk/kkfj;ksa ftuls vkcaVu ds le; viÝaV izhfe;e og igys gh olwy dj pqdk gS] dks jkgr nsus ds vk’k; ls fVIi.kh izLrkfor dh Fkh rkfd muls nksgjh yos h ls cpk tk ldsA izLrkfor fVIi.kh ,sls iV~Vk/kkfj;ksa dks jsLikbV nsxh] tSlkfd dsvksihVh }kjk vk’k; fn;k x;k gSA 4-8- pwafd ;g ekeyk igys ls iRru ds izLrko dk fgLlk gS vkSj tuojh 2011 esa fdjk;k vuqlwph dh leh{kk ls lacafkr dk;Zokfg;kas eas mi;ksDrkvksa@mi;ksDrk laxBuksa dh tkudkjh esa igys ls Fkk] blfy, ekeys dh bl fLFkfr eas i`Fkd ijke’khZ dk;Zokgh djuk t:jh ugha ik;k x;k gSA 4-9- mi;qZDr fLFkfr ds en~nsutj] dsvksihVh }kjk izLrkfor fVIi.kh vuqeksfnr dh xbZ gSA 5-1- ifj.kkeLo:i vkSj mi;qZDr dkj.kksa ls] rFkk lexz fopkj&foe’kZ ds vk/kkj ij] ;g izkf/kdj.k dsMh,l dh fdjk;k vuqlwph ds uhps fuEufyf[kr ikn fVIi.kh ‘kkfey djus dk vuqeksnu iznku djrk gS% ^^^^^^^^ffffVVVVIIIIiiii....kkkkhhhh%%%% 15 o”khZ; nh?kkZof/k iV~Vk ds fdjk;s dh of/kZr njsa] tksfd 4 o”kkZas ds fdjk;s ds led{k izhfe;e dh olwyh ij Lohdkj dh xbZ gSa] 5 o”khZ; fdjk;k la’kks/ku vkSj iquZfu/kkZj.k ds le;] blesa 24 izfr’kr rd dVkSrh djus ds ckn v|ru fd, x, njeku ds lkFk rqyuk dh tk,xh] vkSj ;fn njeku dh de dh xbZ nj of/kZr nj ls mPprj jgrh gS rks njeku dh ,slh de dh xbZ nj ykxw dh tk,xh rFkk ;fn ,lvksvkj dh de dh xbZ nj of/kZr nj dh vis{kk de jgrh gS rks fdjk;s dh ,slh of/kZr nj ykxw jgsxhA^^ 5-2- pwafd dsvksihVh }kjk izLrkfor fVIi.kh dsoy mlh fVIi.kh dh okilh ds fy, gS tks dsvksihVh ds tuojh 2011 ds vkns’k eas pwdo’k NwV x;k fn[kkbZ nsrk gS] blfy, bl fVIi.kh dks tuojh 2011 vkns’k ds dk;kZUo;u dh izHkkoh rkjh[k vFkkZr~ 7 vizSy 2011 ls ykxw fd;k ekuk x;k gS tSlkfd dsvksihVh }kjk izLrko fd;k x;k gSA Vh-,l- ckyklqczg~efu;u] lnL; ¼foÙk½ [foKkiu&III@4@vlk-@143@2015 ¼136½] TARIFF AUTHORITY FOR MAJOR PORTS NOTIFICATION Mumbai, the 7th July, 2015 No. TAMP/7/2010-KOPT.—In exercise of the powers conferred under Section 49 of the Major Port Trusts Act, 1963 (38 of 1963), the Tariff Authority for Major Ports hereby disposes of the Reference received from the Kolkata Port Trust (KOPT) for amendment to its Schedule of Rent for Land and Buildings at Kolkata and Haldia, as in the Order appended hereto. TARIFF AUTHORITY FOR MAJOR PORTS Case No. TAMP/7/2010-KOPT The Kolkata Port Trust - - - Applicant QUORUM (i) Shri T.S. Balasubramanian, Member (Finance) (ii) Shri Chandra Bhan Singh, Member (Economic) ORDER (Passed on this 24th day of June, 2015) This case relates to a Reference received from the Kolkata Port Trust (KOPT) for amendment to its Schedule of Rent for Land and Buildings at Kolkata and Haldia.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5 1.2. This Authority has passed an Order dated 19 January, 2011 on the proposal received from Kolkata Port Trust (KOPT) for revision of the Schedule of Rent for Land and Buildings at Kolkata and at Haldia. This Order has been notified in the Gazette of India on 8 March, 2011 vide Gazette No.47. As per the said Order, the revised Rent Schedule as approved, was to become effective after expiry of 30 days from the date of notification of the Order in the Gazette of India and was to be in force for five years thereafter. The Order of KOPT has been notified in the Gazette of India on 8 March 2011. Thus, counting 30 days thereafter, the revised Rent Schedule would have come into effect from 7 April, 2011 and would be valid till 6 April, 2016. 2. In this backdrop, we are in receipt of a communication dated 08 June, 2015 from KOPT with regard to the Rent Schedule approved in January 2011. The submissions made by KOPT are summarized below: (i) Prior to introduction of existing Rent Schedule of KOPT on and from 07.04.2011 in terms of Order dated 19.01.2011 of TAMP duly notified in Gazette of India Extraordinary on 08.03.2011, long term leases of 15 years, without any option of renewal were granted by KDS, KOPT in respect of land parcels, on realization of 4 years’ rent as Non-refundable and Non-adjustable (NRNA) premium over and above the monthly/ annual rent. The said long term leases contained a rent of revision clause which reads as follows:- “…and the said rent will stand enhanced @ 5.1% every year during the tenure of lease. However, if the escalated rent after 5 years is found to be lower than the rent computed at the rate of rent of the prevailing rent schedule for the appropriate rental zone, then the rent payable at the end of 5 years will be raised to the level of rent as per prevailing schedule rent during the period of lease.” (ii) After introduction of Land Policy Guidelines, 2004, KOPT could no longer realise NRNA premium through the proposed SOR. In order to arrest the drop in KOPT revenue for non-realisation of NRNA premium of 4 years’ rent, it was the proposal of KOPT before the TAMP to jack up the proposed rate of SOR by a factor of 32%. This principle and methodology enunciated by KOPT was accepted by TAMP and it was accordingly reflected in schedule rent (SOR) fixed by TAMP for KDS, KOPT and notified in the Authority’s Order dated 19 January, 2011. (iii) The long term lessees, who had to pay NRNA premium of 4 years’ rent in addition to monthly/ annual rent, would have their lease rent compared with SOR after every 5 years for the purpose of rent re- fixation which would fall after introduction of KOPT’s 2011 SOR. Since the SOR already factored in the element of premium, if the long term lessees, who already paid NRNA premium while taking the lease, would have to pay rent at SOR rate, with premium factor already subsumed, at the time of 5 yearly rent review and re-fixation, it would be a harsh, injudicious and double blow to them. (iv) Therefore, in a bid to mitigate the impact and to avoid such double-taxation, KOPT suggested to TAMP in the footnote of proposed SOR to allow a discount factor of 24% (if 32% is hiked on the base rate 100, then 24% of 132 is to be reduced to arrive at 100) on the SOR and then to compare the said discounted SOR with the escalated rent payable by the long term lessees, who forked out NRNA premium while taking the lease during 5 yearly rent review and re-fixation. (v) TAMP sought clarification of KOPT on this point, vide its letter No. TAMP/7/2010-KOPT dated 2.8.2010. But, TAMP did not ultimately approve/ disapprove the same in spite of acknowledging the aforesaid clarification duly furnished by KOPT. The said footnote was omitted by TAMP in their order dated 19.01.2011, though TAMP took into account factor of 32% to offset loss of income due to non- levy of NRNA premium in the proposed SOR. It led KOPT to assume that suggestion of KOPT to reduce SOR by 24% while comparing lease rent and schedule rent at the time of 5 yearly rent re- fixation of those long term leases involving NRNA premium, was turned down by TAMP. (vi) Accordingly, KOPT has been considering SOR - without reducing the same by 24% - at the time 5 yearly review and re-fixation of rent of long term leases for comparing with lease rent payable and re- fixing the lease rent at the SOR, if the same is found to be higher than original lease rent duly escalated @ 5.1% per annum. (vii) One such long term lessee, Premier Tea Limited (PTL), on being applied 5 yearly rent re-fixation at SOR sans any discounting factor in the same principle recently, strongly objected to the decision of KOPT. They not only represented before KOPT but have also approached TAMP and the Ministry of Shipping with their grievance. They have contended that since they had paid NRNA premium equivalent to 4 years’ rent at the time of commencement of lease in 2004 over and above the payment of monthly rent, they should be exempted from paying rent w.e.f. 15.04.2014 at the prevailing SOR of KOPT (effective from 07.04.2011) which had inherent in it an element of 32% to offset the parameter of NRNA premium. According to them, KOPT’s decision is harsh and double-blow on them. PTL6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] have, therefore, requested to review the decision of KOPT and compare rent payable by them w.e.f. 15.4.2014 at SOR after reducing it by 24% and not with SOR as such. (viii) There are 107 leases involving NRNA premium. However, out of the aforesaid leases, 5 yearly review of rent of some of them fell prior to 07.04.2011 and those cases would remain unaffected. The 5 yearly rent review and re-fixation of those leases, which would be due after 07.04.2011, consists of two categories, viz:- (a). Duly escalated lease rent of some of the leases during first review after 5 years or second review after 10 years may be higher than the prevailing SOR and in those cases, the lessees would continue to pay the lease rent along with annual escalation mentioned in the lease deed. (b). In other case, duly escalated lease rent is found to be lower than the SOR and the rent payable is brought up to the level of SOR. (ix) In view of the foregoing, it is proposed that the following footnote, in the line suggested by KOPT in the proposed SOR vide the letter No. Fin/389/B dated 2.9.2010, may be introduced w.e.f. 07.04.2011:- “Note: Escalated rates of rent of the existing 15 years long term leases, which have been granted on recovery of premium equivalent to 4 years rent, would be compared with the updated SOR after reducing the same by 24%, at the time of 5 yearly rent revision and refixation, and if the reduced rate of SOR is higher than the escalated rate, such reduced rate of SOR would be applied and if the reduced rate of SOR is lower than the escalated rate, such escalated rate of rent would continue to be applied.” (x) The aforesaid proposed note, if approved by TAMP, will be applicable for PTL and all other similarly placed cases. 3. With regard to PTL referring the matter to this Authority, as brought out by KOPT above, it is to state that the PTL vide its letters dated 18 May, 2015 and 25 May, 2015 has written to us in the matter in reference. The submissions made by PTL are summarized below: (i) The PTL have set up its 100% EOU unit in a piece of land taken on lease from KOPT in the year 2004. The lease is for a period of 15 years. (ii) While taking such lease, PTL had paid 4 years rent as premium (upfront money- non-refundable) and also the cost of standing structure in 2004 including post-dated cheques for 15 years i.e., complete rent for 15 years as per procedure prevailing then. (iii) As per the lease condition, KOPT is entitled to re-view the lease rent after every 5 years up to the schedule rent (SOR) then in force, if such SOR is more than the lease rent payable then. (iv) In tariff order for revision of rent for Kolkata Port Trust land dated 19/01/2011, it is seen that while computing the SOR for different area of KOPT, TAMP has allowed an increase of rent by 32% over and above the tendered rent (please refer para 11(vii) (b) & (c)) in order to compensate the loss that the KOPT will suffer by not allowing to take a premium equivalent to 4 years rent for 15 years lease, which KOPT is taking since 1996. (v) It has also been observed that the KOPT, while forwarding its proposal to TAMP for rent revision, has proposed that those existing lessees who had already obtained 15 years lease by paying 4 years rent as premium (Upfront money), will be allowed a reduction of 32% over the new SOR while their rent revision takes place after every 5 years. (vi) However, Tariff order for revision of rent for KOPT land issued on 19/1/2011 is silent on such proposal of KOPT. (vii) The KOPT sought to revise the lease rent and impose new SOR without allowing 32% rebate, though they have proposed same conditions to TAMP while seeking revision of SOR. This has resulted in an increase of lease rent by about 106% in 2014 over the rent payable in PTL’s case. (viii) The point was duly highlighted to KOPT by PTL vide letter 14 November 2014, but KOPT turned down their appeal, though accepting that their contentions are correct and that they are eligible to such rebate of 32% in new SOR. The reason sighted by KOPT is that since TAMP’s order dated 19/1/2011 does not indicate such reduction of 32%, they are handicapped.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 7 (ix) The PTL, on seeing such contention of KOPT accepting PTL’s contention about their genuine claim of 32% reduction in SOR, had further highlighted to KOPT about TAMP’s earlier order no. TAMP/53/2003- Gen dated 28 August, 2003, which has already empowered all major ports to consider the SOR rates as ceiling rates and ports are free to allow any rebates on SOR if they so like in eligible and genuine cases. (x) The KOPT did not reply to the letter of PTL and during a meeting advised PTL to pay demand notices totaling to ` 24,32,448/- for the period December 2014 to May 2015, as non-payment is incurring heavy interest. (xi) In view of the above, the Authority is requested to ascertain whether such order no. TAMP/53/2003- Gen dated 28 August 2003 allowing all SOR as ceiling rates and ports are free to allow rebates on SOR, is valid or not, if they so desire, is eligible. 4.1. With regard to the submissions made by PTL, it is stated that during the review of the Schedule of Rent for Land and Buildings of KOPT at Kolkata and Haldia in the year 2011, the KOPT as a foot note at the bottom of the proposed Rent Schedule for KDS had proposed a note stating that rates for the existing leases which had been granted 15 years long term lease on recovery of premium equivalent to four years rent would be compared with the new schedule, after five years for their date of allotment, reducing the scheduled rent by 32% and then the comparison to be carried out. 4.2. Since the proposed note appeared to have certain bearing on the covenants of the existing lease agreements entered into between the KOPT and the concerned lessees, the KOPT was requested to clarify the position. As recorded in the table given under para 7 of the Order dated 19 January, 2011, the KOPT had responded that in case of existing lease which has already been granted for a period of 15 years after obtaining 4 years’ rent as premium, there is a clause that after every 5 years, Port Trust reserves the right to review and re-fix the lease rent upto the Schedule of Rent (SoR) then in force, if the same is more. As in the proposed Rent Schedule submitted to TAMP, there is one of the methodologies followed to arrive at the rentals from the highest tender rate of port land. In those cases, highest tender rate that has been obtained have been further enhanced by a factor of 1.32 (i.e. 32% rise) to distribute equally over the 15 years period. The lessees already paid such premium will be doubly-taxed if their rent is revised as per proposed rent schedule wherein 32% enhancement has already been incorporated. To avoid such doubly-taxed cases, such a note has been proposed. However there is a typographical error – the said deduction will be @ 24% i.e. to say that at the time of review and re- fixation of existing lease rent for existing lessees after 5 years, the comparison will be made with the proposed schedule rent by applying a discount of 24%. The KOPT had given the calculation for arriving at 24% deduction. 4.3. With regard to the submission made by KOPT as brought out above, it is to state that as per note 2(a) of the then existing Rent Schedule for land and buildings at KDS approved by the Government in the year 1996, the KOPT was required to collect, incase of long term leases for the period of 15 years, a non-refundable non-adjustable upfront premium equivalent to 4 years’ rent. The Land Policy Guidelines of 2010 did not stipulate collection of upfront premium incase of annual lease. Therefore, in the proposed Rent Schedule, the KOPT had proposed to dispense with the collection of upfront premium. Thus, as against the then existing practice of collecting upfront premium along with the monthly rentals, the KOPT as per the revised practice was to earn only the monthly rentals. Hence, inorder to facilitate a like to like comparison between the existing and proposed arrangement, the KOPT had then envisaged to factor the upfront premium. In this connection, it was seen that KOPT, based on workings (as discussed in the January 2011 Order of KOPT), had arrived at a factor of 1.32 and enhanced the updated tender value and thus, arrived at the rentals based on the tender value. 4.4. Based on the view taken by this Authority then, that it would be appropriate for a Port Trust to assess the market value under all options given in the Government guidelines and derive lease rentals based on the one which is most beneficial to it, the highest lease rentals out of the lease rentals determined which will be in the best financial interest of the port, was approved. Accordingly, it was seen that in majority of the cases, lease rentals derived based on the tender approach was highest and the same was approved. 4.5. Since the rentals based on the tender approach (which had factored a premium factor of 32% to make good for the loss of upfront premium by KOPT) was approved, the note proposed by the KOPT enabling it to compare the rentals being paid by the existing leases which had been granted 15 years long term lease on recovery of premium equivalent to four years rent with the rentals derived by reducing the scheduled rent by 24%, after five years for their date of allotment, thereby giving relief to such lessees, ought to have been inserted. 4.6. However, inspite of seeking a clarification from the KOPT with regard to the said note, the matter had not been dealt in the Order relating to the review of the Schedule of Rent for Land and Buildings of KOPT at Kolkata and Haldia passed in January 2011. It is with reference to non-insertion of the said note that the KOPT and PTL have now approached us. 4.7. From the submissions made by the KOPT then, it is seen that the KOPT had then proposed the note with the intention of giving relief to its 15 years long term lessees from whom it had already collected the upfront8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] premium at the time of allotment, so as to avoid double levy from them. The proposed note would give respite to such lessees, as intended by the KOPT. 4.8. Since the matter had already formed part of the proposal of the port and was already in the knowledge of the users/ user organisations in the proceedings relating to the review of Rent Schedule in January 2011, no separate consultation proceedings is found necessary at this juncture on the matter. 4.9. In view of the above position, the note proposed by KOPT is approved. 5.1. In the result and for the reasons given above, and based on a collective application of mind, this Authority approves insertion of the following foot note below the Rent Schedule of KDS: “Note: Escalated rates of rent of the existing 15 years long term leases, which have been granted on recovery of premium equivalent to 4 years rent, would be compared with the updated SOR after reducing the same by 24%, at the time of 5 yearly rent revision and re-fixation, and if the reduced rate of SOR is higher than the escalated rate, such reduced rate of SOR would be applied and if the reduced rate of SOR is lower than the escalated rate, such escalated rate of rent would continue to be applied.” 5.2. Since the note proposed by KOPT is only to restore the note which appears to be only an omission by oversight in the January 2011 Order of KOPT, the note is deemed to have come into effect from the effective date of implementation of the January 2011 Order i.e. 7 April, 2011, as proposed by KOPT. T. S. BALASUBRAMANIAN, Member (Finance) [ADVT. III/4/Exty./143/2015/(136)] Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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