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Lucknow’s civic body, UP Metro Rail Corp lock horn over property tax bill of ₹8 cr
According to the agreement between the UPMRC and the state government, metro properties are exempted from property tax, said UPMRC secretary Pushpa Belani
LUCKNOW: The Lucknow Municipal Corporation (LMC) and the Uttar Pradesh Metro Rail Corporation (UPMRC) are at loggerheads as the former has sent the latter a property tax bill of ₹8 crore.
Sharing more information on this, additional municipal commissioner Pankaj Singh said, “The UPMRC has properties from Munshipulia station to Amausi metro station. These properties house Pizza corners, restaurants and other commercial establishments. They also earn from putting up advertisements on the metro pillars. Yet they don’t pay taxes to the local body.”
The LMC officer added, “We are also assessing how to tax their colony and other properties. LMC will be sending another bill for their colony soon. As per a government order, UPMRC was exempted from paying the property tax for five years. Now, after the lapse of that time period, the body cannot avoid paying taxes.”
On the other hand, UPMRC secretary Pushpa Belani said, “According to the agreement between the UPMRC and the state government, metro properties are exempted from property tax. There is no time period mentioned in agreement. Hence, the property tax imposed on the metro is wrong. The LMC officials are citing the case of property tax payment in Ghaziabad but they should know that metro rail in Ghaziabad is operated by the Delhi Metro Rail Corporation. Hence, the property tax is paid there.”
Meanwhile, chief tax fixation officer of LMC, Ashok Singh, said, “The government order allowed an exemption for five years. The UPMRC also knows it. Being a commercial organisation, they cannot enjoy tax exemption forever. If they try to misguide us, the LMC will seize their accounts. Besides, we will issue another bill to collect advertisement tax from them as they are using metro pillars for advertisements.”
