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MCD freezes accounts of cinema halls, hospitals

Continuing its drive against tax defaulters, Delhi's civic authorities on Tuesday froze the bank accounts of two cinema halls, two hospitals and six trade offices.

india Updated: Feb 15, 2006 02:54 IST

Continuing its drive against tax defaulters, Delhi's civic authorities on Tuesday froze the bank accounts of two cinema halls, two hospitals and six trade offices.

The accounts of Satyam and Excelsior cinema halls, Jassaram and Mangalam hospitals and six trade offices at the International Trade Tower in Nehru Place were frozen after they ignored the Municipal Corporation of Delhi (MCD)'s notices to pay property taxes, officials said.

While the cinema halls owed Rs1 million each, Jassaram Hospital at Karol Bagh has to pay Rs 4,00,000 and Mangalam Hospital at Vinod Nagar has tax arrears of Rs 3.4 million. The six trade houses were to pay over Rs 5 million.

"As in earlier instances, the action was taken as a last resort to get the taxes, which have been pending since 2003-04. The accounts were frozen this afternoon," said Surabhi Varshney, joint chief assessor and collector of MCD.

The authorities also sent a notice to a plush south Delhi club for not paying taxes of Rs 12.1 million.

The MCD on Monday agreed to remove a freeze on the bank accounts of Delhi University and five colleges after they paid part of their property tax arrears and gave an undertaking to pay the rest before March 31.

On Saturday, the MCD had frozen the accounts of the five colleges - St. Stephen's College, Hindu College, Hansraj College, Kirori Mal College and Shri Ram College of Commerce - for repeatedly ignoring warnings over delays in tax payments.

On February 4, MCD had frozen the bank account of Jawaharlal Nehru University and sent a notice to Delhi Metro for not paying property taxes.

The MCD has collected taxes worth Rs 4.85 billion so far, against a target of Rs 13.5 billion to be collected by the end of the current fiscal in March.

First Published: Feb 15, 2006 02:35 IST