A day after the Patiala municipal corporation (MC) sealed five commercial units in different areas of the city for not paying house-tax returns, the civic body softened its stand on Rajindra Gymkhana Club.
The authorities have extended the deadline for the club management, asking it to settle dues, which amount to Rs 78 lakh, by September 9. The club has not paid house tax returns for more than 15 years now.
It may be recalled that after non-compliance of the PMC orders, the civic body had sealed five commercial units on Tuesday and had given 24-hour deadline to the club management to settle its dues.
The club has more than 2,000 members which included names of influential politicians and leaders across Patiala.
Meanwhile on Wednesday, the PMC officials held a meeting with the club's executive committee and decided to give some more time to settle its claims.
Interestingly, the PMC has agreed to the plea of club's committee pertaining to payment of Rs 30 lakh in first installment against the full payment of Rs 78 lakh in one go.
The club has to pay Rs 41 lakh as interest against the principal amount of Rs 37 lakh.
The corporation has issued notices to house tax defaulters under Section 138 of the Act, which carries the provision of attaching movable and immovable property of defaulters and the same can be auctioned as per rules.
When questioned about partisan attitude towards the club, city mayor Amarinder Bajaj said nothing was like that since they had agreed to pay first installment of Rs 30 lakh on coming Monday.
"We are not going to waive off any interest and it will be ensured that the club will make a total payment of Rs 78 lakh," he said.
Responding to such favourable treatment to other defaulters, Bajaj said: "The club is not a commercial unit as it is a no profit institution. Whatever it earns, it spends on public utilities.