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November 11, 2000

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Attachment notice served
on Hyderabad airport

Syed Amin Jafri in Hyderabad

The row between the National Airports Authority and Secunderabad Cantonment Board over the attachment notice to the Rajiv Gandhi International Airport in Hyderabad has taken a new turn with both agencies seeking intervention of their respective ministries to sort out the matter.

The SCB has warned that it will attach all the immovable properties at the Rajiv Gandhi airport if it fails to clear the property dues. This episode seems to be the first of its kind in the country wherein an airport is attached.

Interestingly, the state government is trying to mediate a settlement between the warring parties both coming under two different central ministries.

The long-drawn 'battle' between the NAA and the SCB came to a head on Thursday with the SCB serving a 15-day notice to attach the properties of the Hyderabad airport if property tax dues amounting to Rs 66.4 million were not cleared immediately.

The notice asked NAA to clear all the dues of the last five years within 15 days. In a communication to the NAA, SCB Executive Officer Ajay Kumar said, "If the due amount of Rs 66,361,340 is not reimbursed within the stipulated time, we will have to seize the entire property."

Kumar stated that the assessment committee had fixed an annual rent of Rs 54,825,500 with effect from 1995. "The property tax amounted to Rs 16,776,603 per annum. We despatched the tax bill in September directing the NAA to pay Rs 8,25,47,035," he said.

"However, NAA sought exemption of the special conservancy tax. While the matter was pending with the board, we asked NAA to at least pay the property tax," he said.

NAA requested the SCB to extend the deadline up to December 31 but to no avail. NAA was not surprised when the notice was served. According to NAA sources, they have informed their headquarters about the issue.

"We have informed our bosses about the attachment notice. There is still 15 days' time. The amount claimed by the SCB is very high. We are contesting their claims. We are also consulting our legal advisers," the sources said and explained that the Civil Aviation Ministry has also been apprised of the row, with a request to take up the matter with the Defence Ministry and the state government.

However, the airport director has been prohibited from transferring the property until further orders. The general public has also been prohibited from receiving the property by way of lease, mortgage, sale, assignment or transfer.

Lessees of the airport land and buildings - Indian Airlines, Jet Airways, Hotel Ramada Manohar, Family World, Belson Taj, Indo Burma Petroleum, Shakti Resorts and Shakti Gas Limited - have been asked to remit the lease rents directly to the Cantonment Board and not the NAA with effect from November 9.

The schedule of the attached property includes all the land admeasuring 213.83 acres, together with buildings, constructions, sheds, quarters and hangars.

The Hyderabad district collector and Bowenpalli Sub-Registrar's office have been informed about the attachment notice.

According to sources, Hyderabad District Collector Rajeshwar Tiwari is trying to end the row between the two agencies and mediate a settlement mutually acceptable to both parties.

The NAA is understood to have urged the Civil Aviation Ministry to seek the intervention of Chief Minister Chandrababu Naidu. Apparently, the SCB has informed the Defence Ministry about the row and sought its support.

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