GMR-led DIAL said it won the bid to development Delhi airport through a global tender where terms like concessional land and usage of 5% of airport land for commercial purposes were available to all bidders
New Delhi: Questioning the jurisdiction of The Comptroller and Auditor General (CAG) which had detected a loss of Rs1.63 lakh crore in the leasing of land to GMR-led private operator, the Delhi International Airport Pvt Ltd (DIAL) on Monday said the concessions available to it to run the Delhi airport were part of the bid documents and were available to every bidder, reports PTI.
CAG, in its draft audit report which is yet to be tabled in Parliament, states that DIAL could earn Rs1.63 lakh crore over a period of 60 years from land that leased out for a mere Rs100 per year.
"At the outset we would like to state that DIAL, being a public-private partnership, does not come under the purview of CAG audit," DIAL said in a statement.
GMR-led DIAL said it had won the bid to development Delhi airport through a global tender where terms like concessional land and usage of 5% of airport land for commercial purposes were available to all bidders.
"The bid process and conditions were reviewed and upheld by the Supreme Court of India in 2006," it said.
Stating that the figure of Rs1.63 lakh crore as value of land was "theoretical and grossly misleading", it said the amount of revenue accruing to DIAL over 58 years does not represent the time value of money.
"It (Rs1.63 lakh crore) is simply the absolute amount of revenues that accrue to DIAL over 58 years (45.99% of the same will be shared with Airport Authority of India) and does not represent the time value of money. The net present value of this land would be only Rs4,547 crore (about Rs19 crore per acre)," the statement said.
On CAG's criticism of Civil Aviation Ministry allowing DIAL to charge airport development fees (ADF) from air passengers in violation of agreement, the operator said development fee is a form of pre-funding that is globally applied in number of airports.
"ADF is permitted under Section 22A of the AAI Act and this was known to all bidders. Hence this was not a post bid change," it said.
CAG had stated there was no mention of a development fee in the original bid and levying of such a charge violated the Operation Management Development Agreement (OMDA).
GMR-led DIAL said the levy of development fee was necessitated on account of inability of AAI to infuse further equity and lenders not willing to provide further debt.
The imposition of the development fee on passengers at Delhi airport came under attack in the Rajya Sabha last month with CPI-M, BJP, SP and BSP members questioning the levy for incoming passengers.
"For DIAL, it must be noted that, amount of DF levied directly reduces the basis used for calculating the aeronautical tariff at the airport to be charged from passengers and airlines," the statement said adding passengers and airlines would have else been paying 200% of additional tariff hike.
"As a result, DF is actually detrimental to DIAL as it meant a loss of nearly Rs 546 crore of revenue per year," it said adding DIAL has delivered world class infrastructure in fulfilment of its commitment under the concession document.
Haridwar-based Patanjali Yog Peeth has been issued notice for for sale of coupons of different denominations for organising 'yog shivirs' across the country
New Delhi: After Income Tax, it is now turn of the Service Tax department to issue a notice of Rs4.94 crore dues to Yoga guru Baba Ramdev's trust for alleged duty evasion on its income raised through country-wide 'yog shivirs' (camps), reports PTI.
The department's snoop and investigation wing, Directorate General of Central Excise Intelligence (DGCEI), has also launched a scrutiny of accounts of various activities conducted by the trusts run by Ramdev across the country since 2006.
The latest tax notice, after the Income Tax department had slapped a notice of Rs58 crore against Baba Ramdev's trusts, has been issued against the Haridwar-based Patanjali Yog Peeth for "sale of coupons" of different denominations for organising 'yog shivirs', both residential and non-residential.
Thousands of people have participated in these camps conducted across the country in the last five years.
In his reaction, Ramdev's spokesperson SK Tijarawala said they will counter the Service Tax department's action.
"We are replying to the notice. Yog shivirs are classified under the category of providing medical relief which cannot be termed as earning commercial profit," he said.
Sources said income generated from Ramdev's yoga camps, in which people participate after buying coupons, is liable to be brought under the service tax domain.
Under service tax provisions, Yoga is in the taxable list of health and fitness services.
Sources said agency sleuths, during the investigation, recorded country-wide price tags of coupons which were sold in an increasing value order from the back row to the front during these 'yog shivirs'.
The DGCEI has also recorded that while the coupons for non-residential Yoga camps ranged from Rs51-Rs7,000, the rates at residential camps for facilities like air-conditioned tents would cost between Rs8,000-Rs12,000.
The agency has now launched a scrutiny of the balance sheets and ledgers of all the 'shivirs' conducted by Ramdev's trusts in the last five years, following which, sources said, the I-T department will also be informed about the income from these avenues which could have escaped the Income Tax net.
Recently an I-T notice, for the assessment year 2009-10, on Haridwar-based Patanjali Yogpeeth Trust, Divya Yoga Mandir Trust and Bharat Swabhiman Trust have been slapped on the income of Rs120 crore which the I-T department has held as "commercial activities".
Baba Ramdev's trusts have challenged this I-T order saying they have nothing to hide.
Baba Ramdev, who is leading a campaign against black money in the country, heads an organisation that runs the trusts which manages the manufacture and sale of ayurvedic medicines in India and abroad.
His trusts have been enjoying tax exemption under the provisions relating to charitable organisations for the last few years.
Baba Ramdev's trusts are also under the scanner of the Enforcement Directorate (ED) for alleged contravention of foreign exchange rules.
The yoga guru, had last year declared his business empire to be worth more than Rs1,100 crore. The capital involving the four trusts run by him totalled Rs426.19 crore while the expenditure incurred on them amounted to Rs751.02 crore.
While the Divya Yoga Mandir trust has a capital of Rs249.63 crore, Patanjali Yoga Peeth trust has Rs164.80 crore, Bharat Swabhiman trust Rs9.97 crore and Acharyakul Shiksha Sansthan Rs1.79 crore, all totalling Rs426.19 crore.
Tree House Education that has a total of 302 pre-schools across 37 cities, would buy pre-schooling division of MT Educare
Mumbai: Tree House Education and Accessories Ltd, one of the leading providers of educational services said it signed a non-binding memorandum of understanding with MT Educare Ltd for buying the company's pre-school division comprising six centres at Mumbai and Pune, reports PTI.
No financial details were provided. The transaction will be closed after the usual due diligence, a company statement said.
Commenting on the development, Rajesh Bhatia, promoter and Managing Director, Tree House Education said, "Tree House wishes to utilize company assets more judiciously and we are happy to sign this agreement with MT Educare to acquire its pre-school divisions in Mumbai and Pune. These agreements will help the company in realising more revenue from the leased premises without any additional capital or manpower deployment."
The past six months have seen Tree House create substantial student intake capacity across the country, Bhatia said.
Tree House Education has a total of 302 pre-schools across 37 cities out of which 240 are self-operated.