NMMC notices to 424 SSIs for ₹148 cr property tax dues

Navi Mumbai Municipal Corporation (NMMC) is targeting 424 small scale industries (SSI) to collect ₹148.61 crores due in property tax from them. It is all set to issue notices for recovery to the defaulters this week

NAVI MUMBAI: Navi Mumbai Municipal Corporation (NMMC) is targeting 424 small scale industries (SSI) to collect ₹148.61 crores due in property tax from them. It is all set to issue notices for recovery to the defaulters this week.

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The drive comes following a Supreme Court (SC) order on April 19, which the civic body says directs the small scale industries located in the MIDC TTC industrial belt under the civic body jurisdiction to pay their property tax arrears by August 2 and allowing it a recourse to attach properties of defaulters. The SC order has come amidst a 22 year court battle.

Of the 1,650 SSIs from which property tax is collected, 995 have paid their taxes. Of the rest, while 597 have not paid the penalties for delay, 424 have not paid the tax.

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.

He added, “The SC order which is a major victory for the civic body in our 22 year legal battle, has come following detailed presentation to the court of the services and infrastructure being provided by NMMC in the MIDC region.”

Dismissing the opposition by the SSIs, he said, “We know the court has clearly ordered that they pay the dues and then come for the August 2 hearing.”

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What the SSIs say

The TTC MIDC Industries Association (TMIA), formerly Small Scale Entrepreneurs’ Association (SSEA-TTC) which has been waging the court battle claims that NMMC has misrepresented facts to the court which has made the observations sans hearing its side.

Said R. Srinivasan, CEO of TMIA, “We have written to the prime minister on the issue. We are not against paying taxes, but will pay to the right authority and the right amount. NMMC is simply putting out various figures sans explanation to pressure the SSIs to pay.”

He alleged, “NMMC is twisting the SC order and there are still legal issues that need to be addressed before the final order comes.”

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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.