Wipro mulls legal action against BBMP

Written By Unknown on Kamis, 28 November 2013 | 23.07

With the Bruhat Bangalore Mahanagar Palike (BBMP) charging Wipro   of evading property tax, the two entities may be staring at a long drawn legal battle.

On Wednesday, MS Shivaprasad, the Chairman of the BBMP had made a statement accusing Wipro of not paying Rs 16.47 cr of property tax. However, Wipro refutes the allegations calling the tax demand unsubstantiated reports CNBC-TV18's Kritika Saxena.

But that is not the only worry for Wipro. The software giant claims that not only is the tax claim flawed but the manner in which BBMP officials tried to collect the tax is also illegal.

Also read: Shiv Nadar's New Innings: Philanthropy

"On November 27, officials and corporators of Bruhat Bangalore Mahanagara Palike (BBMP) arrived at Wipro's Sarjapur campus without prior notice and resorted to highhandedness and arm twisting tactics for nearly seven hours.  It was an  illegal attempt  to collect money against a notice for collection of property tax, which is not final and has been responded  to by pointing out errors in data points and assumptions;" said Wipro in its statement.

It added that it was the second time in the past 11 months that BBMP had resorted to intimidatory tactics to collect money against, what it calls - an unsubstantiated notice of payment.

"These notices have been superseded with multiple fresh notices by BBMP itself, and the latest one is yet to be adjudicated.   It is appalling and unfortunate that responsible leaders of the civic body would choose to deal with a responsible corporate citizen in this manner without being mindful of the process of "Natural Justice".  Such an approach adopted by BBMP is indeed a matter of great concern as they are resorting to these tactics when the matter is under review with the BBMP officials themselves," Wipro further added.

It also further denied the allegations made by the BBMP officials of evading tax and 'refusing to pay dues' and called the version reported by some local newspapers "factually incorrect and presented out of context."

In its statement Wipro further added; "We urge BBMP to follow the due process of adjudication as prescribed in the relevant statute, give Wipro an opportunity to be heard and reach a considered conclusion based on current law  and thereby ensure adherence to the principles of "Natural Justice". Wipro is exploring all legal options at its disposal to seek redressal."



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