RefunD of differential amount deposited with RIICO
Abhi Sharma
(Querist) 11 May 2011
This query is : Resolved
Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) allots industrial land to individuals/organizations. An industrial plot can be permitted to be used
for setting up of hotel without going for any change in land use for commercial purposes
of the plot. In other words, for this facility the allottee concerned will not be required to
pay any conversion charges. However, the allottee concerned will have to pay differential
development charges worked out at the prevailing industrial rates less the development
charges already paid at the time of allotment of the plot. The differential development
charges as mentioned above would form part of the development charges (cost of
industrial land) as updated at par with the development charges for the industrial land
calculated at the rate of industrial area concerned and as may be prevailing at the time of
seeking such permission. The differential development charges are being recovered
deeming that the land is being allotted to set up an hotel at the time of seeking such
permission.
We applied, lets say in january and were allotted land on payment of the differential development charges amounting to around Rs. 60 lacs. Then suddenly after a few days of alotment to us and signing of lease with us RIICO scrapped the requirement of payment of differential development charges for the simple reason that "Hotel" has been declared as "industry" long back and as such no differential development charges are required to be paid. the promotion of hotel industry was also kept in mind while making such decision.
NOW WE WANT TO GET differential development charges deposited by us refunded. IS IT POSSIBLE? WHAT WOULD BE THE PROPER REMEDY? ANY CASE LAW IN THIS REGARD WOULD BE VERY HELPFUL? PLEASE HELP.
Abhi Sharma
(Querist) 11 May 2011
when we contacted RIICO we were told that the amendment scrapping the requirement of payment of differential charges is only for future allotments and not for those already made. but my point is that when when "hotel" was always an "industry" then such a requirement is not legal in the first instance. the amendment scrapping the requirement was merely a erealisation of mistake. is there any way we can take benefit of amendment in back date although the amendment has not been made applicable with retrospective effect?
Raj Kumar Makkad
(Expert) 11 May 2011
You can seek this information from RICCO by way of RTI application and after receipt of their reply, you can very well claim refund of erroneously deposited differential amount as discussed by you in detail and no case law is required for this purpose as this is only a procedural lapse which can be got corrected at any time.
vinay sonpal
(Expert) 12 May 2011
Payment made under mistake are not in discharge of the liability and the recepient holds in trust. He is bound to repay the amount paid under mistake. Write demand letter and call for repayment within two weeks and if they refuse file writ in Rajasthan High Court immediately.
Abhi Sharma
(Querist) 12 May 2011
may be i didn't make it clear enough earlier so i make it clear a bit more. the money was not deposited with RIICO erroneously, as at the time of depositing money it was required by law to do so. its just that after depositing the money the amendment was brought in and the requirement of payment was scrapped for future applications. my only question is can we take the benefit of amendment for past transactions?
