Service Tax on Co-operative Society Members

SERVICE TAX ON MEMBER’S CONTRIBUTIONS

Circular No. 175/01/2014-ST dated 10-Jan-2014, issued by Under-Secretary to Government of India, Ministry of Finance, contains following points:

(Note: RWA = Resident Welfare Association)

  1. In a residential complex, monthly contribution collected from members is used by the RWA for the purpose of making payments to the third parties in respect of commonly used services or goods [Example: for providing security service for the residential complex, maintenance or upkeep of common area and common facilities like lift, water pump, health and fitness centre, swimming pool, payment of electricity Bill for the common area and lift, etc.]
  2. Exemption is provided specifically with reference to service provided by an unincorporated body or a non-profit entity registered under any law for the time being in force such as RWAs, to its own members. However, a monetary ceiling has been prescribed for this exemption, calculated in the form of five thousand rupees per month per member contribution to the RWA, for sourcing of goods or services from third person for the common use of its members.
  3. If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members.
  4. This tax has been in effect since 2005. At that time, exemption ceiling was Rs. 3000.

This circular mentions only RWAs i.e. our CO-OPERATIVE HOUSING SOCIETIES. However the same principle is also applied to club memberships, membership fees of associations and chambers of commerce, etc.

Such service tax collection has been struck down by service tax tribunals and high courts under the principle that where every member is a share-holder and every share-holder is a member, there is no provision of service from one entity to another.

Most of us are un-able or un-willing to fight it out in court. However, the least we can do is to ask for a refund after paying the tax.

M. B. Damania.

2014 Jul.10.

Companies cannot reject claim for hospitalization intimation failure

Claim cannot be rejected for failure to intimate hospitalization in medical emergency. Consumer forum directs recovery of compensation from erring officials

The forum held both the insurance company and the TPA guilty of deficiency in service and unfair trade practice. It ordered payment of the claim amount of Rs 1,58,174 along with 9% interest from August 31, 2010. Additionally, the forum awarded Rs 8,000 as compensation for harassment and agony, and Rs 3,000 as costs.

The forum also directed an inquiry to be conducted and the compensation of Rs 8,000 proportionately recovered from the salaries of those officers who are found guilty of causing harassment and indulging in unfair practice. A compliance report must be filed within six months.
Impact: Maximum number of complaints at the level of the district forum are against insurance companies. Yet, there is no improvement in the attitude of insurance company officials because compensation is paid by the firm for their misdeeds. A change can be expected only if compensation pinches the pockets of erring officials. Hopefully, this judgment should start the beginning of a practice that could bring about a change in the system and compel insurance companies to behave responsibly.

 

Click Here for full details of the case and the judgement – Jehangir Gai – Times of India 070714

Service Tax applicable on Maintenance Charges collected by Society ?

Please find below the circular no. 175/01/14-ST  dated 10.01.2014.  Service tax is not applicable on maintenance charge collected by society [limit Rs5000 per month]. Emphasis added.

Dr. P.K.Banerjee
______________________________________________________________________________

 Circular No.175 /01 /2014 – ST

 

F. No.354/237/2013-TRU

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise& Customs

Tax Research Unit

North Block, New Delhi

10th January, 2014

To

Chief Commissioners of Central Excise and Service Tax (All),     Director General (Service Tax), Director General (CentralExcise Intelligence), Director General (Audit), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All).

 

Madam/Sir,

 

Subject:  Levy of service tax on services provided by a Resident Welfare Association (RWA) to its own members – regarding.

 

Service tax on ‘club or association service’ which covers Resident Welfare Association (RWA) was introduced with effect from 16.06.2005, vide section 65(105)(zzze) read with section 65(25a)[(25a) was later renumbered as (25aa)]. Under the positive list approach which was followed prior to 1st July 2012, exemption was available under notification No. 8/2007-ST dated 01.03.2007, if the total consideration received from an individual member by the RWA for the services does not exceed three thousand rupees per month. This notification was rescinded vide notification No. 34/2012-ST dated 20th June 2012, with effect from 1st July, 2012.

2.         Under the negative list approach, with effect from 1stJuly, 2012, notification No.25/2012-ST [sl.no.28 (c)] provides for exemption to service by a RWA to its own members by way of reimbursement of charges or share of contribution up to five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members.

Certain doubts have been raised regarding the scope of the present exemption extended to RWAs under the negative list approach. These doubts have been examined and clarifications are given below:

Sl. No. Doubt Clarification
(i) In a residential complex, monthly contribution collected from members is used by the RWA for the purpose of making payments to the third parties, in respect of commonly used services or goods [Example: for providing security service for the residential complex, maintenance or upkeep of common area and common facilities like lift, water sump, health and fitness centre, swimming pool, payment of electricity Bill for the common area and lift, etc.]. Is service tax leviable?

 

(ii) If the contribution of a member/s of a RWA exceeds five thousand rupees per month, how should the service tax liability becalculated?

Exemption at Sl. No. 28 (c) in notification No. 25/2012-ST is provided specifically with reference to service provided by an unincorporated body ora non–profit entity registered under any law for the time being in force such as RWAs, to its own members.

 

However, a monetary ceiling has been prescribed for this exemption, calculated in the form of five thousand rupees per month per member contribution to the RWA, for sourcing of goods or services from third person for the common use of its members.

 

If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members.

(i) Is threshold exemption under notification No. 33/2012-ST available to RWA?

 

(ii) Does ‘aggregate value’ for the pusrpose of threshold exemption, include the value of exempt service?

 

Threshold exemption available under notification No. 33/2012-ST is applicable to a RWA, subject to conditions prescribed in the notification. Under this notification, taxable services of aggregate value not exceeding ten lakh rupees in any financial year is exempted from service tax. As per the definition of ‘aggregate value’ provided in Explanation B of the notification, aggregate value does not include the value of services which are exempt from service tax.
If a RWA provides certain services such as payment of electricity or water bill issued by third person, in the name of its members, acting as a ‘pure agent’ of its members, is exclusion from value of taxable service available for the purposes of exemptions provided in Notification 33/2012-ST or 25/2012-ST ? In Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006, it is provided that expenditure or costs incurred by a service provider as a pure agent of the recipient of service shall be excluded from the value of taxable service, subject to the conditions specified in the Rule.

For illustration, where the payment for an electricity bill raised by an electricity transmission or distribution utility in the name of the owner of an apartment in respect of electricity consumed thereon, is collected and paid by the RWA to the utility, without charging any commission or a consideration by any other name, the RWA is acting as a pure agent and hence exclusion from the value of taxable service would be available. However, in the case of electricity bills issued in the name of RWA, in respect of electricity consumed for common use of lifts, motor pumps for water supply, lights in common area, etc., since there is no agent involved in these transactions, the exclusion from the value of taxable service would not be available.

Is CENVAT credit available to RWA for payment of service tax? RWA may avail cenvat credit and use the same for payment of service tax, in accordance with the Cenvat Credit Rules.

 

3.         Trade Notice/ Public Notice to be issued. Hindi version to follow.

 

[Raj Kumar Digvijay]
Under Secretary to the Government of India

 

Do you know how to file an RTI plea?

How to file an RTI plea

The Act prescribes a simple procedure to obtain information. Though some public authorities have their own formats, there is no compulsion to stick to the prescribed format

Step 1: Identify the department you want information from. Some subjects fall under the purview of State governments or local authority such as the municipal administration/panchayat, while others are handled by the Central government

Step 2: On a sheet of white paper, write out the application by hand, or type it, in English, Hindi or the official language of the area. You can also ask the public information officer to put it in writing

Step 3: Address the application to the State/Central Public Information Officer. Write the name of the office from which you seek information, and the complete, correct address. Clearly mention ‘Seeking information under the RTI Act, 2005’ in your subject line

Step 4: State your request in the form of specific, detailed questions, and mention the period/year your request falls into. Ask for documents or extracts of documents, if required. To obtain documents, the applicant has to make a payment of Rs. 2 per page

Step 5: Pay Rs. 10 to file the plea. This can be done in the form of cash, money order, bank draft or a court fee stamp. The stamp should be affixed to the application. Applicants below the poverty line (BPL) need not make the payment but have to attach a copy of the BPL certificate along with the application

Step 6: Provide your full name and address, contact details, email address and sign the application clearly. Put in the date and the name of your town

Step 7: Take a photocopy of the application and keep one with you for future reference. Send your application by post or hand it in personally to the department concerned. Don’t forget to get an acknowledgement

Step 8: The law mandates that information be provided in 30 days. If this does not happen, you can file an appeal. The first appeal should be addressed to ‘The Appellate Authority’ with the name of the department and the address. The appellate authority is mandated to revert in 30 days from the date of receipt of the appeal. If the Appellate authority fails to reply, further appeals lie with the Information Commission, the Chief Information Commissioner, State/Central Information Commission

Compiled by Zubeda Hamid; graphics by Satwik Gade

Click Here to read more of this article

Housing societies adopt green ways

Housing societies adopt green ways to save cost
The Nyati Environ Cooperative Housing Society in Tingrenagar has managed to reduce its monthly electricity bill by half, simply by tweaking its power plans and adopting a greener behaviour. Installation of an energy-efficient sewage treatment plant, replacing tube lights with compact fluorescent lamp (CFL) or light emitting diode (LED), efficient management of elevators and other common appliances has brought down their electricity consumption significantly. 

In fact, the residents do not have to use geysers as solar panels installed in the society provide hot water to the 400-odd households. The society also recycles water and practices vermiculture. 

Nyati is one of the 50 randomly selected housing societies in the city selected by the Green Energy Foundation (GEF), a city-based NGO, to study energy consumption patterns of residential societies in the city. GEF advised 25 of them on ways to reduce their carbon footprint. 
Click Here for the full story

Pineapple Juice Is 5 Times More Effective Than Cough Syrup

Pineapples contain bromelain, an enzyme with anti-inflammatory properties. It fights infections and kills bacteria. The juice from fresh pineapples can suppress coughs five times more effectively than cough syrup. 

One cup of pineapple juice contains nearly 50% of the daily requirement for vitamin C intake. This helpful nutrient works to implement the use of vital enzymes within the body that regulate metabolism and energy conversion.

Pineapple juice also contains high levels of manganese, a mineral that predominately helps form healthy connective tissue and bones. Manganese works to absorb more calcium, metabolize carbohydrates and fats, plus increases regular nerve function.

Some bromelain appears to be absorbed by the body intact, so it’s also thought to have effects outside the digestive tract. In fact, bromelain is often marketed as a natural anti-inflammatory for conditions such as arthritis. It’s one of the most popular supplements in Germany, where it is approved for the treatment of inflammation and swelling of the nose and sinuses due to surgery or injury.

If you have one of many types of persistent coughs and it’s not something more serious like pneumonia, reach for pineapple juice instead of cough syrup. It’s less expensive, has no toxic chemicals and contains the nutrients that will help fight a cold.

Click Here for more details

Can’t find the missing file? Go, reconstruct it!

VINITA DESHMUKH – Information Commissioners usually ask PIOs to lodge an FIR in the police station in case a file goes missing. In one case under the RTI, the CIC asked the PIO to ‘reconstruct’ the missing file to facilitate justice to a doctor allegedly involved in a criminal case

When Jugal Kishore, a Delhi resident asked for the file pertaining to a show cause notice of one Dr Prashant Kumar of Lok Nayak Hospital, he was denied information by the Public Information Officer (PIO) stating that the file was ‘missing’. When Kishore went in for an appeal, the First Appellate Authority (FAA) ignored his request. He then filed asecond appeal to the Central Information Commissioner (CIC).
The CIC ordered the PIO and FAA to search for the ‘missing’ file and lodge a first information report (FIR) at the police station about the missing file. Two years went by and yet the file could not be found and FIR was also not lodged. Considering that Dr Kumar’s fate lay in the finding of that file, CIC M Sridhar Acharyulu in a historic decision asked the hospital to ‘reconstruct’ the missing file in February 2014.
The CIC stated, “Earlier, the Commission did not direct the Respondent to recreate the file. Since the Commission found that Respondent Authority was not successful in tracingthe file, it is necessary in the interest of providing required information by the Appellant, which might help him prove the innocence of Dr Prashant Kumar, directs the PIO to collect the information from different sources to reconstruct the file of Dr Prashant Kumar as far as possible. The Appellant too offered to cooperate with the PIO in reconstructing the necessary documents to prepare the file of Dr Prashant Kumar.”
Following is the chronology of this interesting RTI case as projected in theCIC order of 24 February 2014.

  • Kishore filed an RTI application dt.9.4.12 with the PIO, Lok Nayak Hospital (under Section 7 of the RTI Act) seeking information against nine points with regard to show cause notice issued to Dr Prashant Kumar He had also filed another RTI application regarding payments made to Dr Kumar
  • On not receiving any reply for both his applications he filed an appeal the Appellate Authority reiterating his request for information
  • The Appellant, Kishore, made a second appeal stating that PIO has made it a standard practice to say records are not available and FAA has made it a practice not to respond or give any hearing.
  • During the hearing, Dr Deepak Kumar Singh, Respondent Officer submitted that records pertaining to Dr Prashant Kumar are not available. Kishore submitted that since Dr Prashant is in prison, he is seeking information on behalf of Dr Prashant Kumar.
  • Kishore submitted that CIC had ordered the Appellate Authority to conduct an enquiry u/s 18(2) of the RTI Act into the whereabouts of the missing personal file of Dr Prashant Kumar. The relevant portion of the order had stated: “…the Commission believes that it will be in the interest of the appellant to remand the case back to the First Appellate Authority with a direction that he/ she conduct an enquiry as per provisions u/s 18(2) of the RTI Act into the whereabouts of the missing personal file of Dr Prashant Kumar, fix the responsibility and take appropriate action against the official found guilty of having misplaced the file. The enquiry report as also the report on action taken based on the outcome of the enquiry to be shared with the Appellant within four weeks of receipt of this order. An FIR too may be lodged with the police about the missing file once it is confirmed that the file remains untraceable. A copy of the FIR may be shared with the Appellant.” However, the hospital did not comply by the order”.
  • The FAA informed the Commission that she had directed Dr Manju Mehra, AMS (Admn) to file an FIR. Dr Manju Mehra, AMS (Admn) informed the Commission that she had not filed the FIR with the police, since she felt that once the enquiry is over the filecan be reconstructed.
  • Since the AMS (Admin) has given the reason for not lodging the FIR, the Commission directed that now that the enquiry has been conducted and enquiry report shared with the Appellant, the FIR may be lodged as directed by the Commission with the concerned branch of Delhi Police and copy of FIR share with the Appellant which was done.
  • All through Kishore reiterated that Dr Prashant Kumar was implicated in a criminal caseand when he sought details of information from personal file of Dr Prashant Kumar which was not made available to him since 2012. The CIC order states, “He filed series of RTI applications and the matter came before Information Commissioner in 2012. The Respondent Authority did not comply with the directions of the Commission. The Appellant filed a non-compliance petition and Commission took a very serious objection and warned the Respondent with serious action considering that as willful violation of law. The Appellant pleaded that this information would help him to prove the innocence of Dr Prashant Kumar in a criminal case implicated by certain persons in the Public Authority. The Appellant also cited fact of missing file and non-compliance of CIC orders as indicators of biased action against Dr Prashant Kumar.”

 

CIC concluded in its order, “This case assumes very serious propositions and it affects the liberty of Dr Prashant Kumar who is totally depending on the discovery of missed file. There is a delay of more than two years in either tracing the file or fixing up the responsibility. The so-called enquiry conducted did not yield any result.  Hence, the Commission is compelled to recommend that the Minister for Health and Family Welfare, Government of National Capital Territory of Delhi (GNCTD) to conduct an independent enquiry without involving officers of Respondent Public Authority and giving an opportunity to Appellant to provide his allegations against some of the officers of Public Authority and to provide innocence of Dr Prashant Kumar. The entire exercise is to be completed within two months of receipt of this order. A copy of the enquiry report along with the action taken shall be shared with the Appellant and the Commission within two weeks of completion of the exercise.”

 

The deadline for the enquiry report to be submitted to CIC is April.

 

Earlier, in a similar case, Shailesh Gandhi, the then Central Information Commissioner, on 29 July 2009 had directed the PIO to give a copy of the reconstructed file created by using papers and communications received by the appellant.

 

(Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet – The Inspiring Story of A Braveheart – Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.)

http://www.moneylife.in/article/cant-find-the-%20missing-file-go-reconstruct-it/36921.html

 

Redevelopment Greed is making housing societies neglect maintenance & repair

Red alert! Redevelopment Greed is making housing societies neglect maintenance & repair

2 July 2014, Mumbai:  The return of monsoons is good news to everybody, but as always, there will be severe casualties in aging and ill-maintained buildings in every metro, including Mumbai. One may safely predict that at least five buildings will collapse in Mumbai alone, especially on the days with the heaviest rains, simply because of the additional weight of several thousand kilograms of absorbed rainwater that the dilapidated structures will have to bear. This weight is unevenly distributed on a weakened RCC structure, causing structural collapse.

 The following problems are perennial and systemic:

1)      The buildings of Mumbai and every other metro are aging. Every passing seasonal cycle of summer, monsoon and winter are causing further deterioration in the cement and steel of RCC structures by rusting and cracking. Therefore, every passing year, the load-bearing capacity of the RCC of every building deteriorates by small percentage like 0.2 to 1%.

2)      Older buildings deteriorate at a faster rate e.g. 1% per year. If they are well-maintained, this rate of deterioration may be reduced to 0.5%, effectively increasing its life span by many years.

3)      Unfortunately, many buildings have been made into “sick” buildings over the past decade by short-sighted cooperative societies neglecting them, in the lust for getting them declared as “dilapidated”, so that they go into commercial redevelopment. The load bearing capacity of the RCC of such buildings deteriorates by 5-10%. These buildings are like ticking time-bombs, waiting to collapse.

4)      In the monsoon, the rain-water seeps into the walls and ceilings of such neglected structures, increasing their weight by several thousand kilograms. This additional weight is distributed unevenly on the RCC frame, making it extremely vulnerable to sudden structural failure. These buildings cannot continue to be occupied. Ignoring them is a criminal negligence on the part of the government and municipal corporations.

5)      There is no civic body which has the necessary mandate for vacating and demolishing demolish hundreds or thousands of such critical buildings before they collapse due to “natural causes” in the coming monsoons. If such a body is not created, there is simply no alternative to redevelopment – whether voluntary or forced. These must be demolished and rebuilt under supervision of an empowered government body. Unfortunately, such an empowered body does not exist!

6)      A timetable for performing emergency repairs on thousands of other buildings is a must. These are not yet critical, they will inevitably become critical and dangerous if neglected for another 3-4 years. This must also be done under supervision of an empowered government body.

7)      Unfortunately, it is financially unviable for all the thousands of buildings of Mumbai to be redeveloped and rebuilt simultaneously. Therefore, a priority list will have to be made by the government agency after scrutiny.

8)      Many MLAs, MPs and corporators are builders, or have invested in building industry. These persons are aware of the deterioration, but they are using their knowledge for their own private benefit. The knowledge of these persons must be harnessed for public good. Unfortunately, such politicians are actively preventing any proactive planning from happening, for fear of harming their own interests!

9)      On a conservative estimate, more than 80,000 flats are lying vacant all over Mumbai. They belong to builders, estate agents and investors. Such flats should be requisitioned by the government and municipal corporations, and used for immediately resettling the people living in dangerous buildings.

10)   For all the above-mentioned work, which is urgent, new laws needs to be passed,and a new government agency is required to be constituted under the urban development ministry.

 

Problems Caused by Redevelopment Greed:

Since redevelopment started in 1991 about two decades ago, and builders could augment the FSI (Floor Space Index) of the land by purchasing TDR (Transfer of Development Rights), cooperative housing societies started neglecting their structures. Seduced by builders who promise larger houses and new buildings, building societies have been keen to steamroll opposition to their redevelopment proposals by individual members by deliberately allowing their building to deteriorate, so that structural auditors can declare them as “dilapidated”.

Earlier, it was a nightmare for a society to be told that its building was structurally unsound, and managing committee members and general body members alike were anxious to avoid it by regular re-plastering, painting and repairing. But in the last two decades, a report from structural engineers saying that the building is “dilapidated” or is in need of “major repairs” has been the dream-come-true of every managing committee, because it legitimizes their quest for redevelopment.

Redevelopment is a gravy-train by which everybody gets to make money, and especially civic authorities who give various building permissions, cooperative department officials, and the managing committees of societies. Many residential buildings aged around 30 and above would have been in a relatively better state, were it not for this lust for redevelopment. Despite a fair number of stalled redevelopment projects, and the opposition by cautious members in every society, the greed-is-good ethos of the majority of members in almost every society ensures that this gravy train is gaining momentum.

Brief overview of Mumbai’s redevelopment over the last two decades: http://tinyurl.com/History-Mumbai-Redevelopment

Over 10 percent of Mumbai’s 30,000-odd society buildings are currently suffering from varying degrees of redevelopment-driven neglect by their managing committees, which collect money for their Repair Fund and Sinking Fund every month, but never spend for repairs and maintenance, Hoping to reap windfall gains from redevelopment, the managing committees favour a dilapidated appearance, which sends a come-hither signal to builders.

Sadly, every such society will not enter into the process of redevelopment swiftly; the overwhelming majority of old buildings will have to wait for many years before their redevelopment happens. Hence, residents are condemned by their greedy and negligent managing committees to live for long in buildings with fast-deteriorating RCC columns, beams and slabs.

In every society, one or two people are fighting a losing battle against this commercially-driven madness. They are seeking better maintenance of their societies.  Most often, their voices are raised only at meetings, and this makes them pariahs. Far from recognizing that their words are in the common interest, a majority of their neighbours consider them mad, and shun them. Their managing committees are quick to paint them as anti-social villains opposed to the prosperity that will be brought about by redevelopment.

One such person is Rohit D’Souza (9819199863rohitpdsouza@gmail.com), a young sportsman of Mulund. Due to the constant leakage and seepage from the rooftop tank, and the consequent rusting and deterioration of the building structure, Rohit and his neighbours fear for their lives, and have written many letters to their building secretary and to to MCGM’s Ward Officer for T-Ward.  But their letters may as well have been written by residents of thousands of other residents of Mumbai, who are in the same boat: http://tinyurl.com/Please-repair-tank

 

Numerous societies are in exactly the same boat. Improper structural maintenance by societies due to greed, cost cutting, ignorance, unavailability of skilled labourers, disputes between members etc. is endangering the lives of thousands of families living in Mumbai. The steel in the RCC columns, beams and slabs has rusted and become exposed in many buildings, and Rohit’s building is only a sample of what thousands of buildings are currently looking like. Like Rohit, lakhs of people in Mumbai region are saying, “We are not opposed to redevelopment per se, but we are definitely opposed to the deliberate neglect of our buildings, which is a growing threat to our lives.”

But are the government and municipal authorities listening? And more importantly, are the managing committee members listening?

Or will they, like the Municipal Corporations of Mumbai, Mumbra, Thane etc. wake up only after the building crashes down?

Issued in Public Interest by

Krish

9821588114

Building.RTI.Union@gmail.com

PS: After reading this, if residents of societies wish to gently start reminding their societies to maintain the building, they may use this word file as a format: http://tinyurl.com/sample-letter-to-society

 

What to do if a tree is being felled in Mumbai, Maharashtra

A tree lover’s manual should be the Maharashtra (Urban Areas) Preservation of Trees Act, 1975 (as amended on 03.11.2006).

What to do if a tree is being felled, cut, trimmed or being murdered in Mumbai, Maharashtra

This act, among other things, categorically defines what constitutes felling. It includes burning or cutting or in any way damaging a tree. A tree is any perennial woody plant, whether in the seeding or sapling stage or fully grown stage, and includes shrubs whose branches spring from the ground level.
When can a tree be chopped?

Even if the tree is in private premises, it cannot be hacked without prior permission of the Tree Officer. In Mumbai, the civic chief is the chairperson of the Tree Authority which governs all the activities implemented under the Act. Even government bodies require permission from the Tree Authority for any developmental purpose.

There is a time schedule too. On receiving an application, a tree officer has to personally inspect the tree sought to be chopped and submit a report to the Tree Authority within 30 days. The officer has to give adequate public notice in local newspapers as well as by affixing a notice on a conspicuous part of the tree.

The Tree Authority then decides within 60 days whether or not to permit the felling. But even after permission is given, the tree cannot be chopped for 15 days. However, if the authority does not inform its decision within 60 days, the permission applied for shall be deemed to have been granted.

Citizens’ rights:
As a citizen, you have the right to raise objections. It is not necessary to be residing in the same area where a tree is being hacked. For example, a Mumbai resident can take objection to a tree being felled in Nagpur or even Delhi provided the Union territory has a tree act.

When you see a notice for felling, you can write to both the Tree Authority and the local police station asking for the reason. Police officers are empowered by the act to take necessary steps for the preservation and protection of trees.

If you catch a person in the act of felling, you can ask for requisite legal papers in support of his action. If the person cannot produce the documents, you can complain to both the municipal authority and the police station.

If documents show that the municipal authority had failed to decide, a citizen can demand an explanation from the respective municipal council under the Right to Information Act, 2002. Till an explanation is forthcoming from the authorities, the tree cannot be felled.

Penalty:
Every act of chopping at different points of time, whether it is the same tree or different trees, constitutes a separate offense. The penalty includes a minimum fine of Rs 1,000 and maximum of Rs 5,000 with imprisonment from a week to a year.
Other provisions:

Maharashtra Cooperative Housing Societies Model Bye – laws: Bye-law No. 162 says: No member of the society shall destroy, deface or cut down any trees in the society’s compound. A violation may render the member concerned liable for action.
There is another act, The Maharashtra Felling of Trees (Regulation) Act, 1964, that deals with protection and preservation of some select trees like teak, mango, mahua, sandal and tamarind including mangroves.

If the tree has fallen itself:
Chapter V of the MPTA:
Restriction on Felling of Trees and Liability for Planting and
Reservations of Trees.
Section 3:
(1) What if a tree has fallen due to natural forces?
If a tree falls on a property due to natural causes (rain, fire, lightening, wind, earthquake), the Tree Officer, on the basis of an inquiry and after giving reasonable opportunity to the owner/occupier of that property, may then by an order require the owner/occupier to replace the fallen tree of the same or similar species on the same or another suitable site.
(2) What is the Time limit of such order issued by the Tree Authority? Any order received by the owner/occupier should be complied with, within 90 days of the receipt of the order.

Next time you see anyone felling / cutting / trimming a tree, you can take the help of an act to save the tree.

Tree cutting is a non cognizable offence. Becomes cognizable only after obtaining permission from M.M.Court U/s. 155 (2). This application for registering a case / FIR can be made by the Tree Officer / Police Officer / any individual citizen.

Step 1: If you catch a person in the act of felling, you can ask for requisite legal papers in support of his action. If the person cannot produce the documents, you can complain to both the Tree & Garden Department of MCGM (BMC) of your Ward and the local police station.

Step 2: Dial 100 and lodge a complaint about unauthorized tree cutting.

Step 3: Take photographs of the persons and the tree cutting activity.

Step 4: Simultaneously lodge complaints on police website http://mumbaipolice.maharashtra.gov.in/index.asp and on MCGM Website  http://mcgm.gov.in/ and preserve the complaint numbers for follow ups till your grievance is redressed.

Step 5: Visit the local Police Station. Probably the police will register only NC (non cognizable) offence and may ask you to approach M.M.Court (Metropolitan Magistrate Court of MCGM) with the complaint. Be firm and ask the Police themselves to approach M.M.Court to obtain permission to file FIR on the culprits as a tree is state / national property even if it is on a private land.

Step 6: Contact various media with documentary evidence of your complaint.

Step 7: Contact concerned ministries with your complaints with evidence
My own recent experience on unauthorized tree cutting :

I am RTI & Housing Societies Activist, aged 67 years, and an elected Secretary of Andheri Panchvati CHS Ltd., C.D.Barfiwala Marg, Juhu Lane, Andheri (West), Mumbai – 400 058. The society is being managed by an Administrator Shri Chandrakant L.Barge, appointed by the Deputy Registrar of Co-operative Societies, K West Ward, who has not handed over charge of the society till date to me and my elected Managing Committee declared on 02.12.2012.

In response to my complaints of un authorised cutting of thick, healthy and green branches of two huge appx. 40 feet tall Ashoka Trees by the Administrator in my society, I had to follow up with letters, emails, RTI applications, telephone calls, and above all, my personal visits to Tree & Garden Department of MCGM as well as local Police Station for at least 25 to 30 times.

My original complaint about unauthorized tree cutting was lodged on 28.09.2013 with Juhu Police Station and MCGM, K – West Ward. On dialing police control room no 100, local police arrived exactly within 7 minutes. Un authorised cutting of the tree was stopped and the culprit Administrator was taken to Juhu Police Station for further action. I had also accompanied them as witness. The officer on duty discussed something with the culprit and asked me to leave as my presence was not required by him. When I visited the police station again after about two hours to verify the action taken, I was shocked to learn that the culprit was allowed to go without any interrogation or making statements. I was told that no case could be made of the incidence. (All the names of concerned persons are available on request.)

Due to my continuous follow with to Juhu Police Station, Non Cognizable offence was registered only on 24.10.2013 U/s. 8 R/w 21 of Maharashtra (Urban Areas) Preservation of Trees Act, 1975 (as amended on 03.11.2006).

I was being tossed like a football from one office to another by both the departments between 28.09.2013 and 26.06.2014. At last to my good luck, officers concerned for the football game at Juhu Police Station got transferred in April / May, 2014 and more dedicated and loyal officers came in. They assured me and promised me of suitable necessary action as early as possible.

They indeed worked sincerely on my complaint and as a result, at last FIR was registered on the accused Administrator on 26.06.2014 after obtaining permission U/s. 155 (2) from the M.M.Court No.39 by Juhu Police Station. The culprit is not arrested till now. I may have to buy more pairs of shoes.

If you do not follow up with perseverance, your complaint is likely to go to cold storage or disappear. You must follow up vigorously with both MCGM and Police departments. In spite of being an activist, it has taken me about nine months, besides spending energy and money on various visits and documentations just to get one lawful FIR registered. Arrest is awaited since 26.06.2014 till now i.e. 7 am on 02.07.2014.

I am extremely thankful in advance of arrest to the present Senior Inspector of Police Shri Abhay Shashtry who has just taken charge at Juhu Police Station, PI Shri Satpute, API Shri Ram Pote and others all of Juhu Police Station and the loving, ever willing to help ACP of Zone IX Shri D.O.Jadhav at Santacruz.

It’s the corrupt who corrupts the system.

J.B.Patel – Jeby

Housing Societies’ Activist
9820538570
jebypatel@rediffmail.com

30.06.2014

What to do if one is felling, cutting, trimming a tree in Mumbai, Maharashtra

www.mcgm.gov.in