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Govt bodies, private individuals owe Rs 185 crore property tax to Karnal MC

Various central and state government establishments are among top defaulters that owe property tax arrears to the tune of Rs 117 crore to the Karnal municipal corporation (KMC).

punjab Updated: May 20, 2015 12:17 IST
Vishal Joshi
Vishal Joshi
Hindustan Times
Karnal,property tax,municipal corporation

Various central and state government establishments are among top defaulters that owe property tax arrears to the tune of Rs 117 crore to the Karnal municipal corporation (KMC).

KMC has started serving notices to 182 defaulters for recovery of the tax money pending for more than a decade.

Official sources said that hefty dues of property tax, which was a major source of revenue for a local body, were causing hindrance in converting KMC into a financially-independent body.

As per the latest financial report on property tax, there are tax dues to the tune of Rs 27.91 crore for the fiscal year 2012-13 alone.

The National Dairy Research Institute (NDRI), which works under the Indian Council of Agricultural Research (ICAR), owes property tax arrears of Rs 33 crore whereas another ICAR body Central Soil Salinity Research Institute (CSSRI) owes property tax of Rs 4.81 crore to the local body.

Similarly, property tax dues of Haryana Police Academy at Madhuban have grown to Rs 10 crore and an extension centre of Chaudhary Charan Singh Haryana Agriculture University, Hisar, near here has tax arrears of Rs 3.7 crore.

Talking to HT, Municipal commissioner Sumedha Kataria confirmed on Tuesday that the process to recover the huge amount of pending tax arrears had been started.

"We have shortlisted 182 top defaulters who owe more than 10 lakh of property tax dues. In the first phase, dues will be recovered from the major defaulters. As per the records, the KMC has to recover Rs 185 crore in total and the process to collect the rest of the amount would be initiated soon," she said.

There are more that 1.36 lakh identified units which are scheduled to pay property tax. As per rules, the state government has notified rates for different properties including, house, vacant plot, commercial, research or education institutes, central or state government establishments.

Kataria said that ICAR institutes and other government establishments were not paying property tax, while claiming exemption from it.

"Despite notices and reminders in the past, they have failed to submitted papers in this regard. Sincere efforts would be made to collect tax for the development of the city," said the commissioner.

Records said that Harsha Mall at Sector 12 owed Rs 1.62 crore and Noormahal, a five star hotel, Rs 1.24 crore.

Similarly, a large number of households, educational institutes run by a public trust and a convent school had not cleared their dues.

The municipal commissioner said that MC would expedite collection of unpaid taxes by way of self-assessment form.


The municipal commissioner said that the corporation proposes to upload names of tax defaulters on its upcoming website.

"The basic aim of the website would be to promote e-governance where mapped details of each property would be uploaded. People can calculate property tax on the basis in these digitised details," said Kataria while adding the KMC website would be ready within a month.


NDRI - Rs 33 crore

CSSRI - Rs 4.81 crore

Haryana Police Academy - Rs 10 crore

HAU's extension centre - Rs 3.7 crore

Harsha Mall at Sector 12 - Rs 1.62 crore

Noormahal (five-star hotel) - Rs 1.24 crore

First Published: May 19, 2015 21:41 IST