HC stays sealing of Rajkot stadium

Gujarat high court on Wednesday restrained Khanderi gram panchayat near Rajkot from sealing the newly built cricket stadium after the Saurashtra Cricket Association (SCA) questioned the civic body's bid to collect tax.

A division bench has sought reply form the village body and ordered status quo after SCA filed a petition against Khanderi gram panchayat's warning that it would seal the stadium in case SCA failed to pay Rs 1.20 crore towards property tax for the last two years.

SCA's lawyers contended that SCA is a charitable organization and the stadium is not constructed for commercial activity. They also argued that the gram panchayat has not followed any rules that are prescribed under the taxation laws, neither the association has been given time to explain the point that it is actually exempted from paying such taxes.