Recovery of property tax: Ludhiana MC team goes to seal bus stand, roadways promises partial payment

Out of ₹8.32 crore, ₹2.55 crore is the principal amount, while the rest is penalty and interest for the delayed payment

A team of Ludhiana municipal corporation (MC) on Thursday went to seal the bus stand as its management has failed to pay the pending property tax of ₹8.32 crore (including penalty and interest).

MC officials in a meeting with Punjab Roadways’ Ludhiana GM Rajeev Dutta on Thursday. (HT Photo)

However, the team returned after getting assurance from Punjab Roadways that a partial payment of the pending tax will be made in a few days.

MC officials said the bus stand authorities have failed to pay the tax between 2013 and 2018.

Out of ₹8.32 crore, ₹2.55 crore is the principal amount, while the rest is penalty and interest for the delayed payment.

There was a dispute between the management of the bus stand and the maintenance contractor regarding who will pay the taxes, due to which the payment got delayed. But the dispute has now been resolved and Punjab Roadways will clear the dues. Pending tax of ₹1 crore was also paid in March last year.

MC superintendent Vivek Verma said, “We had gone to seal the bus stand as Punjab Roadways had failed to clear the dues even after a sealing notice was served earlier. As the department provides public service, general manager, Punjab Roadways, Ludhiana, Rajeev Dutta, asked to delay the action for a few days. We also had a word with other officials, who assured us that a partial payment of ₹2 to ₹3 crore will be made in a few days and the rest will be paid in a short time. If the department still fails to make the payment, the MC will seal the bus stand.”

Meanwhile, despite repeated attempts, Rajeev Dutta’s comments couldn’t be elicited.

After the completion of polling for the Punjab assembly elections, the fund-starved Ludhiana MC has pulled up socks to tighten the noose around tax defaulters.