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East body aims to spur tax revenues

The cash-strapped East Delhi Municipal Corporation (EDMC) will send property tax notices to over six lakh properties under its jurisdiction.

delhi Updated: Jul 15, 2012 01:10 IST
Rajat Arora

The cash-strapped East Delhi Municipal Corporation (EDMC) will send property tax notices to over six lakh properties under its jurisdiction.

The newly-formed civic body did not have a comprehensive data on the number of properties that are liable to pay property tax in East Delhi. For that, it turned to power dicoms and the information it got had some shocking revelations.

Till date, the corporation was realising property tax from 1.4 lakh properties when the total number of electricity connections installed by the discoms is over eight lakh. The EDMC's projected earnings through property tax at Rs 120 crore are expected to go up several times with the civic body making efforts to bring maximum properties under the tax net. Officials put the new figure at approximately Rs 500 crore.http://www.hindustantimes.com/Images/Popup/2012/7/15-july-pg-02b.jpg

EDMC's revenues are also expected to be spurred by the fact that several illegal colonies will be regularised soon with the urban development ministry clearing the decks for their development. East Delhi is home to maximum resettlement colonies in the city and after the trifurcation of the MCD, there were apprehensions that it had far lesser revenue sources as compared to other corporations.

As soon as such colonies are regularised, the civic body would be able to realise property and other taxes from the inhabitants. Owing to politics of populism, no property tax is being charged from those who live in properties at illegal colonies even though there is a provision for realising tax from properties in unauthorised colonies.

"The problem was that we didn't have details of all properties in our area. Now, the data is available and we will be sending notices to all property owners, including government departments and NGOs in our area," said a senior EDMC official.

"These properties include group housing societies, individual residential buildings, commercial establishments and institutional buildings. Government buildings, those of state government, have been the biggest defaulters. Notices

will be sent to them as well. It would probably be one of the biggest such exercises undertaken by any civic corporation," he added.