PMC crackdown on property tax defaulters, issue notices to 101 industries

Panvel Municipal Corporation warns property tax defaulters of bank account seizure and property auction. 3.5 lakh properties, ₹542.73 crore recovered.

PANVEL: To intensify the crackdown on property tax defaulters, the Panvel Municipal Corporation (PMC) has issued a warning of the seizure of bank accounts and their properties to be auctioned to recover the dues. The civic body also published a list of top defaulters, including 101 industries, 107 non-residential and 100 residential defaulters, in newspapers.

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The PMC has identified 3.5 lakh properties in all the four wards in its jurisdiction, out of which 77,000 property owners have paid their taxes. The remaining 2.80 lakh defaulters are now under the civic body’s radar. The PMC, so far, has recovered ₹542.73 crore in property tax dues since it started collecting it. In the present financial year, it has collected ₹255 crore.

There has been opposition to the demand from some quarters, with some sections approaching the court for relief, however, no stay has been granted. “PMC has been regularly giving incentives to the residents and appealing to them to pay their taxes. Enough time has been given, and it is time now to act against the defaulters,” Ganesh Deshmukh, municipal commissioner, said.

A provision in the Maharashtra Municipal Corporation Act section 128 and Schedule D rule 47, gives power to the civic body to seize or attach moveable and immovable properties and then auction them to the public to recover the tax dues. “We have started issuing notices to the defaulters in all the wards and CIDCO nodes through various teams. We have decided to use the powers granted under the Act to recover the dues. Accordingly, the action of attaching the properties of the violators has begun. The properties cannot be sold or purchased, and hence, no transaction related to them will be permitted. Stickers declaring the ban have been stuck at properties of the major defaulters,” said Deshmukh.

The civic body has been regularly creating awareness on the importance of tax payment through loudspeakers on auto-rickshaws that move in all the wards, said Deshmukh. Residents are informed that a delay in payment of the tax leads to a 2% hike in the payment amount every month, and hence they should pay at the earliest.

101 industries in the Taloja MIDC belt owe ₹151.67 crore in property tax dues to the PMC. The civic body issued notices to them warning of attachment and auction of their properties if the dues were not cleared in 15 days. 45 of these industrial units owe over ₹1 crore in property tax. The minimum tax due from a defaulting unit mentioned in the list published is ₹52 lakh, while the highest is ₹9.14 crore.

“We do not want to take action against anyone, however, if there is no positive response to the notices issued, we will take action as stipulated in the Ac,” said Deshmukh.

Commenting on the PMC threat, Satish Shetty, president of Taloja Industries Association (TIA), took a positive stand, stating, “Right from the time property tax bills were raised by PMC, TIA has always requested its members to pay the taxes. At the same time, TIA approached chief minister Eknath Shinde and requested him to reduce the dues. Subsequently, municipal commissioner Ganesh Naik allowed 12% (10% direct discount+2% online discount) to the industries, and we were also given extended time for payment.”

“PMC has now informed us that it may start attaching the Industrial properties for non-payment of taxes from April 1,” said Shetty.

He added, “Industries that wanted to take up the matter of property tax payment legally, TIA has suggested they can do so if they wish. However, TIA has also suggested that they pay the PMC taxes and then take up the matter legally. This will ensure that they are not charged interest and penalty and also not labelled as defaulters.”

Expressing disappointment at the services rendered by PMC, Shetty said that concerning the property tax PMC is collecting, it is not providing even minimal services like garbage collection, cleaning of roads, river cleaning, etc. “The mandatory garbage collection facility is below standard, as there is a shortage of garbage vans, and sanitation staff is inadequate, leading to fewer visits to the industrial area. Members of TIA Industries strongly believe that the services of PMC leave a lot to be desired.”