Delhi Govt seizes bank accounts of Delhi Gymkhana Club

New Delhi, Jul 15: In a bid to recover its money, Delhi Government today seized the accounts of Delhi Gymkhana Club in all the branches of Punjab National Bank, State Bank of India and Axis Bank for alleged non-payment of luxury tax.

According to the officials of the Department of Excise Entertainment and Luxury Tax, the Delhi Gymkhana Club, one of the oldest Clubs in India, has to pay an amount of approximately Rs 2.92 crore, which is their tax liability for the last three years.

The department has already given directions to the manager of PNB, Gymkhana Branch (Rs 25 lakhs) and SBI, Nirman Bhavan branch (Rs 15 lakhs) to withhold the amount and remit it to the department's account.

"Delhi Gymkhana Club Ltd unregistered (liable to be registered) has not deposited luxury tax nor is getting registered under Delhi Taxes on Luxuries Act 1996 despite assessment done by Luxury Tax officer and rejection of 1st and 2nd appeals by appellate authorities and therefore, recovery proceeding under section 20 and 21 of the Act has been initiated," said the seizure order issued by Dr Puja Joshi, Deputy Commissioner (Taxes) today.

"The Club is liable to deposit luxury tax of Rs 2,92,81,006. The Club appears to be deliberately and intentionally defaulting in payment of luxury tax. Hence the undersigned has to initiate proceedings against the Club and seize all accounts of the Club," the notice said.

Yesterday, the department had issued a notice to the Club to deposit the amount failing which coercive action under the Delhi Land Reforms Act 1984 would be initiated which means process of filing an FIR can be initiated against the Club for the purpose of recovering the luxury tax.

"Despite repeatedly asking the Delhi Gymkhana Club to register under the Delhi Tax on Luxuries Act,1996, they have not registered themselves. They are providing accommodation, rooms and deluxe suites for monetary consideration and thus they are liable to pay tax," said a senior official.

Attempts to contact the Club authorities on the issue did not yield any response. The Club has already gone in for an appeal and had appeared before the Commissioner on June 26.

"They refused to pay up citing that they do not come under the ambit of the luxury tax," said the official. In 2012, the Delhi Assembly had approved the Delhi Tax on Luxuries (Amendment) Bill 2012, under which luxury tax can be imposed on banquet halls, spas, gymnasiums, health clubs and hotels that charge a minimum of Rs 750 per day per room.


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