Industry Status

What happens when an Industrial area created by MIDC is denotified and handed over to a municipal corporation to run? Is it only Cess, LBT, Octroi and Property Tax burden the issue or is it the probability of facing infrastructure problems of street light, poor roads or dealing with Corporators and municipal officers a problem?

If we take the case of MIDC, TTC (Trans Thane Creek) Industrial Area near Navi Mumbai which has been merged with NMMC it seems thousands of people are losing their jobs on account of Units closing down in MIDC, TTC.

TTC Industrial Area was a Notified Area created by MIDC to insulate & protect small, medium and large Enterprises from extraction & harassment by local bodies such as Gram Panchayat, Municipalities etc.

One of the major reasons for closing of these Industrial units in TTC is due to inclusion of MIDC area (despite being “Notified Area”) under the Municipal limit of Navi Mumbai Municipal Corporation resulting into collection of Taxes (Cess LBT, Octroi & Property tax) by NMMC. Unfortunately even after collecting huge taxes NMMC failed help maintain infrastructure resulting in the TTC area having poor roads and streetlights.

Background of case as put up by TTC in their online petition is of importance for us to understand if we want to prevent this from happening in MIDC Taloja:

TTC Industrial area, MIDC near Navi Mumbai was developed by the State of Maharashtra & having a status of Notified area.

The said MIDC area has number of Small & Medium Scale Industries providing employment to thousands of people in Mumbai & Navi Mumbai area.

It is sad to note that many of the Small & Medium Companies in this area are closing down or shifting their base to other states mainly on account of actions of Navi Mumbai Municipal Corporation.

TTC has rightly said that formation of Bodies/Corporations like MIDC was specifically created to support the Industrial Development under the National Policy giving them the Special Independent Status parallel to Civic Bodies like Municipalities.

With the intention to create a Conducive Industrial Climate and to insulate the Cluster of Industries from the anticipated ‘monitory extraction and harassment’ by adjoining Civic Bodies like Gram Panchayats/ Municipalities, the Status of Notified Area was awarded under the National Policy as per the provisions of our Great Constitution, to the so formed Industrial Clusters. And this was by ACT.

And to support this, the Act awards the MIDC the status of ‘Virtual Development Authority’ within the Notified Area similar to that of Gram Panchayats or Municipalities in the civic jurisdiction.

No Notified Area can ever be included by any civic body without De-Notifying the same in a prescribed manner. There are Policy Guide Lines to first ‘De-Notify’ the Area with sufficient substantiation and only then can the area be treated as De-notified.

Despite these Specific Industrial Policy Guide Lines, NMMC is trying to invade TTC, MIDC area (Notified Area) on frivolous counts only for vested monetary interest.

There are many Supreme Court Judgments protecting such Industrial Areas from the adjoining Municipality or Gram Panchayats.

Although, the said matter is pending at Supreme Court, the officers of Navi Mumbai Municipal Corporation are taking Coercive Actions against the Industries threatening them & sending Bank/Property Attachment Notices which is illegal & ultra vires to the constitution of India.

Seeing this scenario in TTC industrial area we need to be alert and we should not be caught napping if our MIDC Taloja is being proposed to be administered by Panvel Municipal Corporation. Hence we have initiated dialogue with MIDC for the Status of Industrial Township.

Warm Regards

Taloja Industries Association (T.I.A)

Juzar A. Burmawala

Hon. Secretary