NAGPUR: The Nagpur Municipal Corporation's (NMC) decision to auction properties to recover dues from property tax defaulters has paid rich dividends. In the last four days, the civic body has netted Rs 2.52 crore as outstanding property tax dues.
Based on an assessment by the NMC, owners of around 1.9 lakh properties in the city, including open plots, commercial and residential properties, are liable to pay tax. After the arrears of property tax collection crossed Rs250 crore mark this fiscal, the NMC took a firm stand and issued a warning stating that properties of owners who fail to clear tax dues will be auctioned.
It has already auctioned nine properties, while seven tax defaulters paid up their dues moments ahead of their properties being auctioned. The Lakadganj zone had to cancel auctioning of properties slated for Tuesday due to the above reason, confirmed assistant municipal commissioner and head of the NMC's property tax department Milind Meshram.
He said all the 10 zones had sent notices to the defaulters asking them to pay their dues. "Most of them did not respond, after which the NMC launched the auction drive. Zone auction teams with public address systems have proved to be very successful," he said.
Highest number of property tax collection between November 15 and November 18 was recorded in Hanuman Nagar zone — from where the NMC has begun auction of defaulters' properties. Here the zone office has received 1.21 crore in just four days. It was followed by Laxmi Nagar zone with Rs22.53 lakh. Lakadganj zone stood third with Rs22.11 lakh collection in four days.
"The administration plans to intensify the auction drive in the coming days. Given the good response to the auctions, we have decided to continue the drive throughout the fiscal," Meshram said.
Property tax is one of the main sources of revenue for the municipal corporation. Standing committee chairman Sandip Jadhav has set a target to recover Rs392.19 crore property tax by the end of the financial year 2017-18, and the NMC has already collected about Rs110 crore till November 18.
Sources said the major taxpayers, who defaulted for many years, were served notices. The tax assessment for major buildings by NMC tax department officials showed that they owed lakhs of rupees. But the taxpayers challenged the assessment before the civic body and also in court. The NMC has never considered early hearing of the case nor has the legal section thought of fighting it out in the court. As a result, thousands of matters are pending.
Based on an assessment by the NMC, owners of around 1.9 lakh properties in the city, including open plots, commercial and residential properties, are liable to pay tax. After the arrears of property tax collection crossed Rs250 crore mark this fiscal, the NMC took a firm stand and issued a warning stating that properties of owners who fail to clear tax dues will be auctioned.
It has already auctioned nine properties, while seven tax defaulters paid up their dues moments ahead of their properties being auctioned. The Lakadganj zone had to cancel auctioning of properties slated for Tuesday due to the above reason, confirmed assistant municipal commissioner and head of the NMC's property tax department Milind Meshram.
He said all the 10 zones had sent notices to the defaulters asking them to pay their dues. "Most of them did not respond, after which the NMC launched the auction drive. Zone auction teams with public address systems have proved to be very successful," he said.
Highest number of property tax collection between November 15 and November 18 was recorded in Hanuman Nagar zone — from where the NMC has begun auction of defaulters' properties. Here the zone office has received 1.21 crore in just four days. It was followed by Laxmi Nagar zone with Rs22.53 lakh. Lakadganj zone stood third with Rs22.11 lakh collection in four days.
"The administration plans to intensify the auction drive in the coming days. Given the good response to the auctions, we have decided to continue the drive throughout the fiscal," Meshram said.
Property tax is one of the main sources of revenue for the municipal corporation. Standing committee chairman Sandip Jadhav has set a target to recover Rs392.19 crore property tax by the end of the financial year 2017-18, and the NMC has already collected about Rs110 crore till November 18.
Sources said the major taxpayers, who defaulted for many years, were served notices. The tax assessment for major buildings by NMC tax department officials showed that they owed lakhs of rupees. But the taxpayers challenged the assessment before the civic body and also in court. The NMC has never considered early hearing of the case nor has the legal section thought of fighting it out in the court. As a result, thousands of matters are pending.
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