In prevailing market conditions when economic meltdown has badly affected the small scale industrial sector in the region and put it on the verge of closure. Majority of industrial units are cutting their manpower and work order.

Under such critical circumstances the taxes around Rs 8 crores imposed by the Jabalpur Municipal Corporation has created pressure over struggling small units in Adhartal Industrial Area. Now, the JMC authorities have asked the industrial units to present record of notification issued by the State Government over development of Industrial Area at Adhartal. And the Industry Department of the State has failed to provide any information regarding the notification to the existing industrialists who demanded the records of notification. On the other hand, JMC authorities are creating pressure of tax recovery and have served notices mentioning huge amount of taxes pending in its records on units situated in Adhartal Industrial Area. It seems that the JMC officials have ignored the norms of Madhya Pradesh Municipal Corporation Act 1959 Section 7 (1). Which clearly mentioned that the constitution of any municipal corporation would not be constituted in any industrial area and institution of government. The JMC has no interference in the Industrial Area Adhartal nor any facility is being provided by the JMC in Adhartal Industrial Area. Recently, in a meeting of office-bearers of Adhartal Industrial Area and Jabalpur Laghu Udyog Sangh with the Municipal Commissioner, officials have raised a question over the existence of Adhartal Industrial Area by asking about the notification issued by the State Government for the development of this area. Jabalpur Laghu Udyog Sangh President Ravi Gupta added that on demand of JMC authorities for notification an application has been submitted with the General Manager, District Industry Centre, Jabalpur, by the sangh, but could not get any positive reply from this office and its headquarters situated at Bhopal. The failure of District Industry Centre, Jabalpur, in providing records of notification of Adhartal Industrial Area has became a critical issue for the industrial survival and growth in Adhartal Industrial Area. Gupta informed that in December 2007, a meeting was held in special presence of the then Minister of State Industries Jayant Mallaiya and Commissioner Industries, Deepak Khandekar. In this meeting Malliya had declared that the Adhartal Industrial Area is the property of State Industry Department. And as per the Madhya Pradesh Municipal Corporation Act 1959 Section 7(1) Jabalpur Municipal Corporation dose not come under the jurisdiction of JMC. Then industry minister had also asked the JMC authorities to submit the proposal of composite tax on Adhartal Industrial Area. But till date, the JMC officials have failed to initiate any official proceedings for the recovery of composite tax. Ravi Gupta added that the JMC authorities are recovering taxes from different sections of the society as per the law, but in case of Adhartal Industrial Area tax recovery the JMC officials are not working in justified manner by asking the notification issued by Madhya Pradesh Government for the development of industrial estate in Adhartal.