In a first for Haryana, MCG auctions properties of tax defaulters | gurgaon | Hindustan Times
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In a first for Haryana, MCG auctions properties of tax defaulters

On three previous occasions, the MCG had pushed back the auctioning process

gurgaon Updated: Nov 01, 2017 17:08 IST
Kartik Kumar
MCG commissioner V Umashankar said that it was a landmark in the history of Haryana and will serve as a warning to tax defaulters that civic bodies can undertake legal measures to recover their tax dues.
MCG commissioner V Umashankar said that it was a landmark in the history of Haryana and will serve as a warning to tax defaulters that civic bodies can undertake legal measures to recover their tax dues.(HT PHOTO)

After much dilly-dallying, the Municipal Corporation of Gurugram (MCG) auctioned four properties of property tax defaulters, the first such instance in the state.

On three separate occasions, MCG officials had postponed the auctioning process at the eleventh hour.

According to officials, 100 bidders participated in the auction held at the Huda Gymkhana Club in Sector 29 on Tuesday evening.

The properties auctioned off included plot number 549B in Sector 37, which had dues totalling ₹8.23 lakh and plot number 82 in Udyog Vihar Phase 6, whose owner had failed to pay dues amounting to ₹1.34 lakh. While the former was auctioned for ₹1, 11,00,000, the latter was auctioned for ₹1 crore.

Three other properties in Udyog Vihar Phase 6 were also auctioned off on Tuesday. While plot number 746/37 was auctioned for ₹1.46 crore, plot number 120 was sold for ₹31.10 lakh. While the owner of the former had dues amounting to ₹60,000, the owner of the latter had failed to submit dues totalling ₹21,000.

While plot number 747/37 in the same neighbourhood was auctioned off for ₹1.81 crore, the deal was called off after its owner made an online transaction and paid the property tax while the auction was underway.

“The auctioning was a landmark in the history of Haryana and will serve as a warning to tax defaulters that civic bodies can undertake legal measures to recover their tax dues,” MCG Commissioner V Umashankar said.

Read I Gurgaon: MCG extends deadline for property tax payment till April 30

“Our right to the bidding amount is reserved to the extent of property tax dues. The remaining dues are transferred to the original owner while the property right is transferred to the winning bidder,” Umashankar added.

For several of the defaulters whose properties were caught up in legal disputes or who had difficulties selling them, the auction may have come as a relief, providing them with a way to sell what they owned.

In September, MCG officials had compiled a list of 100 properties, 25 from each zone that needed to be auctioned after its owners failed to pay off their dues despite repeated reminders.

Owners of 68 buildings subsequently paid their dues and one building was put off the list following a stay order from the debt recovery tribunal.

Nine other properties were also taken off the auction net, as the MCG did not have names of property owners and did not want to get into ‘legal issues with actual owners, who could claim that they did not receive a copy of the order on ‘property tax payment.’

MCG will auction the remaining 17 properties in the near future.

The auctioning process had been deferred thrice. It was scheduled to take place on May 20, but was postponed indefinitely as the MCG introduced rebate schemes for property tax payment instead.

The auction was slated to take place on August 8, but was put off after MCG officials said that their ongoing rebate scheme was fetching good dividend. Later, on August 28, the auction was called off in the morning, as senior MCG officials were sent on deputation across Haryana for restoring law and order in the wake of violent protests by Dera Sacha Sauda supporters following the arrest of the sect’s leader Gurmeet Ram Rahim on the charge of rape.