Chamber flays 'mortgage fee' charged by Kandla Port

Gandhidham, Gujarat, Feb 12 (UNI) The Gandhidham Chamber of Commerce and Industry (GCCI) has flayed the Kandla Port Administration (KPA) for charging a ''mortgage fee'' for issuing NOC to those who have leased KPT land and wish to avail loans from banks and financial institutions.

In a letter to the KPT Chairman, the GCCI has pointed out that the land had been gifted by Maharao Shri of Kutch free of cost for settling refugees from Sind after the partition. But, the KPA has abused its power and is using the land as an instrument of earnings for which it has no locus standi.

The KPA had circulated the amendment of Land Policy guidelines through a circular on February 28, 2006 advising that NOC can be granted for mortgage of leasehold interest along with the structure erected by the lessee thereon in favour of FIs/banks subject to the port retaining the first charge.

Effective from March 1, 2006 the mortgage fee is computed at one per cent of the loan amount up to one crore rupees.

The chamber has pointed out that the Tariff Authority for Major Ports (TAMP) had clarified that mortgage of leasehold rights was not specifically envisaged in the major Port Trusts Act. The chamber regretted that the KPT has mixed up the residential plots as commercial plots which was not so since Maharao of Kutch had gifted it freely for charitable purpose.

UNI