₹148-cr unpaid property tax: Chandigarh MC shoots off notices to 1,000 buildings

With property tax dues piling up to ₹148 crore over the past decade, the municipal corporation has issued tax default notices to around 1,000 government and commercial buildings owners in Chandigarh

With property tax dues piling up to ₹148 crore over the past decade, the municipal corporation has issued tax default notices to around 1,000 government and commercial buildings owners in Chandigarh.

With property tax dues piling up to ₹148 crore over the past decade, the municipal corporation has issued tax default notices to around 1,000 government and commercial buildings owners in Chandigarh. (REUTERS)

While autonomous bodies owe the civic body ₹43 crore in property tax, institutional buildings owe it ₹31 crore, government buildings ₹30 crore and commercial buildings ₹28 crore. Of the total dues, ₹9.3 crore is owed by the UT administration’s Capital Project Division, which has around 700 government buildings under its purview, including police stations, government schools, anganwadi centres and tubewells.

Confirming this, municipal corporation commissioner Anindita Mitra said the notices were issued under Section 138 (manner of recovering tax) of the Punjab Municipal Corporation Act, which authorises the commissioner to attach, sell or seal the property of tax defaulters. Each notice has a two-week deadline.

“We have been attaching and sealing the of buildings of defaulters over the past month. We have already sealed 17 properties and attached 339 buildings in the city,” she said, adding that government buildings were also liable to pay service charges at 75% of the property tax as per the provisions of the tax bylaws framed under the Punjab Municipal Corporation Act, as extended to Chandigarh.

Letters have been issued to the heads of government building and we have asked them to pay the amount, following which action will be initiated within two weeks, she said.

A senior officer of UT administration, requesting anonymity, said there was some issue in reconciliation of the property tax due. “We are in the process of reconciling the amount and will clear the dues of UT buildings in Chandigarh,” he said,

The civic body has been levying property tax on commercial land and buildings since November 22, 2004. Around 23,000 commercial units, including government buildings, fall within the MC limits. The property tax on residential land and buildings, also known as house tax, was imposed from 2015-16 onwards, except for properties having covered area less than 500 square feet.

Hotel Taj deposits ₹70 lakh

The management of Hotel Taj, Sector 17 has deposited a principal amount of ₹70.80 lakh against an outstanding sum of ₹1.65 crore. It has sought time from the civic body to deposit the interest.

At a glance

Property tax payers – 1.36 lakh

Residential tax payers – 1.06 lakh

Commercial tax payers – 30,000

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Type of property Outstanding amount

Commercial ₹28 crore

Industrial ₹8.5 crore

Institutional ₹31 crore

Residential ₹7.50 crore

Government ₹30.24 crore

Autonomous bodies ₹43 crore

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Properties attached in 2022-23

Total attachments 339

Outstanding sum ₹2.5 crore

Amount recovered ₹1.42 crore

Sealed properties 17

De-sealed properties 13

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Major defaulters

UT’s Capital Project Division ₹9.30 crore

PGIMER ₹8 crore

PU estate Branch ₹6 crore

Railway station ₹2.3 crore

Hotel Shivalik View ₹1.2 crore

PEC director’s office ₹2.3 crore

Mini Secretariat, Haryana ₹1.42 crore

Delhi Public School, Sector 40 ₹1 crore

MC’s MOH building, Sector 25 ₹1 crore

Punjab Mini-Secretariat ₹83.41 lakh

HRTC workshop ₹65 lakh

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Tax collection from 2020- 23

2020-21- ₹61 crore

2021-22- ₹70 crore

2022-23*- ₹61 crore

*Collection of property tax from residential and commercial properties till January 2