PMC proposal to auction 2,600 properties hits roadblock as auctioneer demands 2.50% commission

The PMC had initiated the auction process and the recovery of property tax in the region of ₹11,000 crore in December 2024

The Pune Municipal Corporation’s (PMC’s) proposal to auction 2,600 properties whose owners have not paid property tax has hit a roadblock as the private entity enlisted for the auction has demanded 2.50% commission on every property transaction.

Properties not entangled in court cases were sealed when the auction process began. Out of 2,600 properties sealed, 2,000 would be auctioned to recover ₹200 crore in property tax arrears. (HT PHOTO)

Solid waste management department head deputy commissioner Madhav Jagtap said, “The private company enlisted for carrying out the transactions demanded a commission of 2.50% for every transaction. Hence, we are scouting for a government entity or individual who can carry out the auction at a fixed rate.”

The PMC had initiated the auction process and the recovery of property tax in the region of ₹11,000 crore in December 2024. Properties not entangled in court cases were sealed when the auction process began. Out of 2,600 properties sealed, 2,000 would be auctioned to recover ₹200 crore in property tax arrears. The PMC administration had planned to complete the process before March 2025. However, when the PMC sought the assistance of a private auctioneer, a demand of 2.50% commission on every transaction was made which was impracticable for the civic body. The PMC has uploaded the entire list of the properties slated to be auctioned according to the BPMC Act.

For the financial year 2024-25, the PMC had projected a property tax revenue of ₹2,800 crore, considering the 34 newly merged villages. However, with just two months left for the fiscal to end, only ₹2,000 crore has been collected till date. To tide over the property tax income gap, the PMC intensified its recovery operations, cancelling staff leaves and directing an aggressive push to collect ₹600 crore over the next 60 days. The PMC identified Sinhagad Educational Institute, which has an outstanding property tax liability of ₹18 crore as one of the prominent defaulters. The PMC sealed the institute’s office two months ago but the institute has not yet cleared its dues. Hence, the PMC has decided to auction the institute’s properties to recover the outstanding amount.

Similarly, the recovery of ₹3,500 crore in property tax from cell phone towers has become an uphill task for the PMC amid objections from the operators of these structures and the state government’s directive to the civic body to go slow until legal issues are resolved. According to the property tax department, there are 3,000 mobile towers across the city, a fact that came to the fore during a survey conducted two years ago. Out of these 1,600 illegal towers are functional in the PMC areas. The PMC charges tax at commercial rates from these towers and during the past decade, the mobile towers have emerged to be the biggest tax defaulters.