Rooftop restaurant face KMC-cop heat, set to move Calcutta HC
KOLKATA:
Rooftop restaurant
owners, asked to shut down by the KMC and police, have planned to move Calcutta High Court on Monday. Both agencies continue issuing notices for roof access violations and unsafe, unauthorized constructions.
Tired of too many ads? go ad free now
To maintain pressure on rooftop cafes, lounges, and bar-cum-restaurants, the KMC buildings department cancelled inspectors' and officials' leaves on Sunday. Though demolition work was paused for a day, officials were directed to serve closure notices.
Police have also initiated a fire audit, with a 35-point questionnaire for all restaurants operating in Kolkata.
On Sunday, the National Restaurant Association of India said while rule-flouters should face action, 'random closure notices' have prompted them to seek legal recourse.
NRAI president Sagar Daryani said: 'The rule-flouters should face action, why should all establishments have to shut shop? Yes, we will take legal recourse against it. People who received notices despite all compliances will definitely take legal recourse. Why were the licences issued in the first place?'
KMC is issuing notices under two sections. The first one is under section 117 (4) of the KMC Building Rules, which states, 'Every terrace on the topmost storey of any building shall have a common access and shall not be subdivided.'
The other notices are under Section 400 of these rules, which allows the municipal commissioner to order demolition or stoppage of illegal construction that violates rules. On Saturday, Whatsup Café received a notice under Section 117 (A), while the Celica Park management received the Section 400 notice.
According to a senior lawyer consulted by the restaurant owners, 'Any penal action has to be taken after providing an opportunity of defence.
Tired of too many ads? go ad free now
Here, there are restaurants functioning with all valid licenses — trade, fire, FSSAI, excise — that cannot be asked to shut down hours within issuing notices. The petitions will be moved by individual restaurant owners on Monday and Tuesday.'
Daryani added, 'This is a sensitive issue. The restaurant industry is the largest job creator in Kolkata. It is putting a question mark on employment and business.'
This situation arose in the backdrop of KMC officials visiting several rooftop restaurants in the Park Street-Theatre Road belt, extending up to Park Circus market, on Sunday.
This belt and the Karaya area, which fall under borough VII, have the highest number of rooftop cafes, bars, and restaurants, confirmed a KMC official. According to the list that Kolkata police sent to the KMC, borough VII has 19 rooftop cafes, bars, and restaurants, whereas a preliminary list prepared by the KMC indicates the presence of 28-30 such facilities in borough VII.
Apart from this borough, civic officials were sent to some central Kolkata areas, including BBD Bag, to serve the notices.
A separate team from borough XII went to several rooftop joints in the Kasba-Garfa belt, sources said. 'We have served notices asking owners of the rooftop cafes, lounges, and restaurants to shut these joints immediately on their own. Or else we will be compelled to shut them down. If need be, we will demolish all illegal structures,' said a KMC buildings department official.
(With inputs by Tamaghna Banerjee)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 hours ago
- Time of India
Rapido to pilot food delivery service with flat fee model in Bengaluru
BENGALURU: Rapido is rolling out its food delivery service with a different pricing structure from entrenched players, choosing flat fees over commissions charged to restaurants. The move positions the ride-hailing firm as a challenger to Zomato and Swiggy at a time when small restaurant owners are increasingly vocal about rising aggregator costs. According to people familiar with the development, Rapido plans to charge a fixed Rs 25 on food orders below Rs 400 and Rs 50 for those above. These charges are flat fees deducted from the order value, paid by the restaurant to Rapido. While some reports attempted to interpret these as equivalent to a commission range of 8%-15%, people aware of the model clarified that Rapido did not structure its pricing as a percentage-based commission. 'The plan is to study how Rapido is able to pull it off operationally in a handful of pincodes in Bengaluru and then scale it from then on. It is at an extremely experimental stage right now,' said one of the persons cited above. Notably, Swiggy or Zomato charges anything from the range of 16-30% from order values of restaurants on its platforms. 'Delivery takes the same cost for the restaurant aggregator for customers in an assigned distance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo As the market matures, it only makes sense to bring parity to these prices so that restaurant businesses do not suffer. Today's users are not using a Zomato or Swiggy for discoverability anymore; gone are those days. They are using it for ordering from known and trusted restaurants,' another person familiar with Rapido's plans told TOI. A pilot, set for late June in Bengaluru, follows months of talks with the National Restaurant Association of India (NRAI). 'There is scope to make food delivery much cheaper. Aggregators act less as partners but more as transactional merchants. Rapido took our suggestions and implemented this pricing strategy after months of on-ground conversations with restaurants,' NRAI President Sagar Daryani told TOI. Unlike incumbent platforms that often bundle in ad spends and additional service charges, Rapido's model is being positioned as a leaner and more predictable alternative, particularly attractive to small and mid-sized restaurants. Several such restaurants recently took to social media to express frustration over Zomato's and Swiggy's economics over the past many months. Rapido did not respond to a request for comment. For now, its bike-taxi fleet continues to support Swiggy deliveries on a non-exclusive basis in select cities. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)
Business Standard
6 hours ago
- Business Standard
Rapido enters food aggregation with 'Ownly' platform, partners NRAI
Ride-hailing platform Rapido is set to foray into the food delivery segment with the launch of a new online platform called Ownly, which will allow customers to browse and order from restaurants. The mobility startup has also entered into a non-exclusive partnership with the National Restaurant Association of India (NRAI), which represents over 50,000 eateries across the country. The pilot for Ownly is expected to begin in select areas of Bengaluru by the last week of June or the first week of July. The new platform will operate on a zero-commission model, charging restaurants a flat subscription fee. Under the agreement, restaurants will not be permitted to add packaging charges separately, and pricing across online and offline channels will be kept uniform. This means customers will pay only the listed price plus GST—no platform or restaurant mark-ups. 'The price of a dish (excluding GST) is the final price the customer pays. There is no other addition from us or a restaurant partner,' the terms and conditions (T&C) state. Business Standard has reviewed a copy of the T&C between the two platforms. As per the agreed terms, restaurant partners will bear the delivery fee for all orders within a standard radius of 4 km. For orders valued at ₹100 or less, the delivery cost will be ₹10, of which the customer will pay ₹20. For orders above ₹100 and below ₹400, the delivery cost will be ₹25 plus applicable GST. For orders exceeding ₹400, the cost rises to ₹50. Welcoming more players in the food delivery space, Sagar Daryani, president of NRAI, said, 'From what we feel, Rapido has shared a proposal with us that is economically viable and democratic. In principle, they have even agreed to share the consumer database with us. The market will only grow if food becomes cheaper. When food is more affordable, our pricing comes down, and we get more business.' Daryani added that the NRAI will continue engaging with other platforms such as Swiggy, Zomato, and ONDC. An NRAI executive, speaking on condition of anonymity, said that the Ownly model could reduce the total fee (including discounts, delivery, and commissions) from up to 30 per cent—as levied by incumbents like Zomato and Swiggy—to nearly half. Rapido, which already has a network of over 2 million two-wheeler riders, may also allow restaurants to opt for self-delivery if they have their own logistics capabilities. The company did not respond to Business Standard's queries till press time. Amit Bagga, co-founder and CEO of Daryaganj Restaurants, said the initiative could be particularly beneficial for small and independent restaurants. 'This move could be truly beneficial for small, independent restaurants by offering them more options and potentially better margins. However, much will depend on how effectively Rapido executes its logistics. Timely deliveries, especially during peak hours, and consistent rider availability are critical. The success of this initiative will ultimately rely on how well Rapido can manage end-to-end logistics and maintain service standards,' Bagga said.
The Hindu
9 hours ago
- The Hindu
Wall Street, Main Street push for foreign tax rethink in U.S. Budget bill
Industry groups representing sectors including real estate, finance and multinational companies are pushing for the reduction or exclusion of a retaliatory tax targeting foreign investors in the U.S. in the Republican tax bill, as they see it as a threat to their businesses and to the broader markets and economy. The proposed tax, known as Section 899, applies a progressive tax burden of up to 20% on foreign investors' U.S. income as pushback against countries that impose taxes the U.S. considers unfair, such as digital service taxes. It could raise $116 billion in taxes over 10 years. Some individual companies are also pushing for action, according to two lawyers familiar with their clients' plans, who did not name specific companies due to client confidentiality. 'Lobbying surrounding Section 899 is at peak levels,' said Jeff Paravano, a former Treasury Department official who is now chair of law firm BakerHostetler's tax group. The move comes as Senate Finance Committee Chairman Mike Crapo, the Republican in charge of the chamber's tax writing provisions, and other Republicans are in close coordination with President Donald Trump on the tax bill, having met on Wednesday. The White House declined to comment. Mr. Crapo said he would not comment on ongoing discussions about the bill. Global investors hold almost $40 trillion in U.S. assets, such as securities, loans and deposits, according to the U.S. Treasury International Capital Reporting System. This raises concerns about the ripple impact of the bill. "It has the potential to be a very negative impact on the free flow of capital from the U.S. and through businesses that are multinational," said Gabriel Grossman, a U.S. tax partner at Linklaters, adding he has seen some clients put planned investments in the U.S. on pause until they have more clarity on the new levies. The broader bill itself is also creating much debate as it is forecast to add about $2.4 trillion to the U.S. debt and has sparked an explosive feud between Trump and his erstwhile key ally Elon Musk, the billionaire CEO of Tesla. Collateral damage Industries across different sectors are on high alert. The new levy could increase taxes from rents and real estate investment trusts, gains from property sales and securitized products. "There is a legitimate fear among investors that, if this goes through, it could impact investments, and that it would create higher costs for real estate in terms of getting financing," said David McCarthy, managing director at the CRE Finance Council, a nonpartisan trade group. "It could depress the value of real estate if you don't have as much money to finance property purchases." The asset management industry is concerned about outflows. "We encourage the Senate to make this provision more targeted to respond to unfair foreign taxes and other concerning measures rather than disincentivizing beneficial foreign investment in the U.S.," a spokesperson for the Investment Company Institute said. The investment community is also working to clarify whether Treasuries and corporate bonds will remain exempt as they are currently subject to a portfolio interest exception that applies no taxation, lawyers and industry sources said. "There's reason to believe that fixed-income assets wouldn't be in scope, but there's still considerable uncertainty about this point," Morgan Stanley strategist Michael Zezas said in a note to clients. A footnote part of the Budget Committee report, which provides direction to taxpayers, courts and the Treasury in interpreting the statute, says that Section 899 "does not apply to portfolio interest." Foreigners' equity investments, however, do not count with the portfolio interest protection and could be taxed, lawyers and banks said. Multinational companies could face a new tax burden on dividends and inter-company loans, potentially reducing profit, according to Section 899. Jonathan Samford, president of the Global Business Alliance, a lobbying group for international companies in the U.S., said many multinationals could decide to shut down operations in the U.S., risking 8.4 million jobs in the country. "Those companies will not be paying U.S. tax whatsoever because they will not be able to operate in that punitive, high-tax environment," he said. Morgan Stanley said in a note to clients a repatriation of profits out of the U.S. and pressure on the U.S. dollar. Corporate loans could also become more expensive, as loans extended by foreign banks might be subject to the new tax burden if section 899 overrides current treaties, lawyers said, adding that companies could end up paying more for the debt to make up for the tax increase. Senate passage Investors are hoping for some changes in the Senate. Senator Steve Daines, a Montana Republican on the Finance Committee, said it may be necessary to clarify the language in Section 899. 'We want to make sure we don't have tax policies that in some way would diminish the fact that we are the gold standard in the world,' Daines said. Morgan Stanley said in a note that it expects "sufficient Senate Republicans to take notice and clarify the policy to mitigate this risk" of increasing the cost of capital for the U.S. "It actually is pretty much of a nuclear bomb," said Pascal Saint-Amans, partner at Brunswick Group, who is also the former tax chief of the Organization for Economic Cooperation and Development, who led the 2021 global tax treaty. "The coverage (of Section 899) seems extremely broad and the terms are not extremely well-defined."
