Gurgaon: Industries refuse to comply with MCG property tax notice | gurgaon | Hindustan Times
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Gurgaon: Industries refuse to comply with MCG property tax notice

gurgaon Updated: Feb 12, 2017 22:09 IST
Dhananjay Jha

Udyog Vihar phase 4 in Gurgaon. (HT File)

Industrialists who received notice from the Municipal Corporation of Gurugram (MCG) asking them to avail of a 25% one time rebate by clearing their property tax dues by February 28 have refused to comply with the civic body’s instruction.

The Chamber of Industry, Udyog Vihar, has written to the principal secretary industry (PSI), Haryana government, Devender Singh, seeking his intervention in the matter.

Industrialists said their plots must not be charged on commercial rates.

In its letter to the PSI, the industry said not a single plot in Udyog Vihar, Gurgaon, was being used for commercial gains and the MCG was wrongly interpreting the plots use.

“IT offices are being run in many plots where the actual owners have rented out their plots, and as per the central and state government notifications, these are permissible in industrial areas. IT industry is not a commercial unit,” Raj Singla, president, Chamber of Industry, Udyog Vihar, said.

“There is no provision for charging rented property in industrial areas at commercial rates,” SK Gupta, another industrialist, said.

Industry owners said they had a meeting with the former Haryana CM Bhupinder Singh Hooda in February 2013.

“Udyog Vihar has not been declared as commercial. In Gurgaon, only Industrial Development Corporation (IDC) at Sector 14 has been declared for commercial use only,” Ashok Kohli, vice-president, Udyog Vihar Industry, said.

The MCG has offered a rebate of 25% on payment of pending property tax in order to motivate people to avail of the benefit, which is effective till February 28.

The MCG’s property tax target for 2016-17 is Rs 200 crore and in the last 11 months, it has received only Rs 100 crore. The MCG will initiate action against defaulters in March, an official said.

V Umashankar, MCG commissioner, said, “Renting out property in lieu of commercial gain is obvious enough and MCG records have details of all such properties in Udyog Vihar. Commercial tax notice has been issued on the basis of commercial use only.”