E-Paper
NMMC seals properties of 158 defaulting industries , 154 more on target
Navi Mumbai Municipal Corporation (NMMC) has sealed the properties of 158 small scale industries for defaulting on property tax payments. The move follows a Supreme Court order directing the industries to pay their arrears by August 2. NMMC has assessed 1,650 industries for tax collection, with 995 paying in full, 597 paying penalties, and 424 paying nothing, totaling INR148 crore ($19.9m). The corporation has collected INR632 crore in property taxes in the current financial year and is focusing on recovering arrears to boost revenue.
NAVI MUMBAI
Navi Mumbai Municipal Corporation (NMMC) has in a special drive sealed the properties of 158 small scale industries (SSI) in the city for defaulting in the payment of property tax dues for years based on a recent Supreme Court (SC) order. 154 more defaulting SSIs are targeted to be sealed soon.
Following a 22 year legal battle, NMMC says that SC had on April 19, directed the SSIs located in the MIDC TTC industrial belt under the civic body jurisdiction, to pay their property tax arrears by August 2, the date it set for the next hearing. It permitted NMMC to attach properties of defaulters if they failed to do so. The court also declared that it will not conduct the hearing if the dues are not cleared by then claims the civic body.
NMMC has assessed 1,650 SSIs for collection of property tax dues. Of these 995 SSIs have paid their full dues. 597 SSIs have not paid the delay payment penalties, while 424 SSIs have not paid any tax which is to the tune of ₹148 cr says the civic body. NMMC has in the financial year 2022-2023 collected ₹632 cr in property taxes. It is now concentrating on recovering the arrears in the current financial year to boost its revenue.
According to NMMC additional municipal commissioner Sujata Dhole, “Following the SC order, 112 defaulters paid the original tax amount to the tune of ₹36 cr. However, since the response has been miniscule, we initiated a special drive on July 13 to seal properties of 312 defaulters who have paid nothing.”
She informed, “So far properties of 158 defaulters have been sealed and the remaining will face similar action soon.”
The attachments have led to some SSIs making small payments. Said Dhole, “87 defaulters have made some payments to the tune of over ₹1.5 cr while some have given post dated cheques and assured that they will be clearing the dues.”
Dismissing objections from the SSIs, municipal commissioner Rajesh Narvekar said, “The action is in complete compliance of the SC order which is very clear and leaves little room for any doubts. In fact that is the reason payments are being made by some defaulters. We shall of course continue with the drive to ensure total compliance.”
Stated Narvekar, “The SSIs operating in Navi Mumbai are earning from the city. They tax paid by them is used for the development works here. NMMC has developed infrastructure in their areas too. They need to support the development of the city and also follow the court orders.”
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Coercive action contemptuous of SC order say SSIs
The TTC MIDC Industries Association (TMIA), formerly Small Scale Entrepreneurs’ Association (SSEA-TTC) which is fighting the court battle with NMMC says that the present actions are coercive and contemptuous of the SC order,
Said R. Srinivasan, CEO of TMIA, “The civic body has pasted notices at the premises of the units to create a fear psychosis. They are making demands of the original tax due plus interest, which is not right.”
He claimed, “The SC order of February 6, 2017 debars the civic body from taking any coercive action in cases of non-payment of penalties or delay payment charges. This action is contemptuous of the SC order.”
Srinivasan reiterated, “We are not against payment of taxes, but it should be to the right authority and the tax should be of the right amount. SC has not yet given its final order but NMMC which has mis-represented the facts, has twisted the present order, despite several issues yet to be resolved.”
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The legal battle
SSEA-TTC had in 2001 filed a writ petition in Bombay High Court (HC) disputing NMMC’s right to collect property tax from the industries in the TTC-MIDC belt of Navi Mumbai claiming MIDC was its nodal agency to which it pays taxes and that NMMC had done little work in the region. The HC had after 10 years of legal battle, rejected the petition, following which SSEA-TTC had approached the SC in 2010.
