MCD to take action on property tax defaulters

The Municipal Corporation of Delhi (MCD) has decided to initiate proceedings against property owners who do not pay tax or whose cheques are dishonoured under the Delhi Municipal Act, 1957.

The Municipal Corporation of Delhi (MCD) has decided to initiate proceedings against property owners who do not pay tax or whose cheques are dishonoured under the Delhi Municipal Act, 1957.

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Announcing the decision on Monday, MCD Standing Committee chairman Yogender Chandolia said, “Instructions have been issued to officials of the property tax department that henceforth they must initiate proceedings against people who do not pay property tax and whose cheques are dishonoured. The proceedings will be initiated under the DMC Act, 1957.”

Chandolia also said the property tax payers should not be “unduly harassed.” “We in principle are against the increase in taxation and imposition of new taxes. With public co-operation, it is possible that the MCD could earn enough revenue out of the existing tax structure,” he added.

According to Chandolia, in 2009-10, 17,470 more people paid tax when compared to 2003-04 but tax collection has reduced from Rs 776.73 crore to Rs 697.75 crore.

“It is clear that MCD staff should identify people who were paying tax earlier but have stopped,” he added.

Chandolia said receiving a total of 4,257 dishonoured cheques as property tax payment during the current financial year was a “serious matter.”

He directed officials to proceed against such property owners under the DMC Act and Negotiable Instrument Act.