NAGPUR: The Nagpur Municipal Corporation’s (NMC) action against property tax defaulters by auctioning their properties has turned out to be a damp squib. It has returned the properties of around 100 defaulters after the auction process, raising the question mark over the entire process of the civic body’s auction policy which “authorizes the civic chief to return the property and terminate the auction process if the owner pays all the dues and charges within 20 days of the auction”.This has also jeopardized the efforts of successful bidders who have to pay 25% of the auctioned price and participants who have to pay Rs 10,000 each as registration fees. The “faulty” process has led to a simmering disappointment among bidders as they may not take part in any of the NMC’s auction process in future.
According to a data provided by the NMC, the process to auction around 200 properties for recovery of property tax arrears completed between November 2017 and March 31, 2018, and out of this, auction of around 110 properties was completed successfully.
“After the auction process, around 100 defaulters turned up and assured to pay the arrears. The NMC recovered arrears, expense incurred for auctioning process and 10% of the auctioned amount to be paid to successful bidder. Then, the NMC returned the properties to defaulters,” the sources said, adding none of the successful bidders in remaining 10 cases got the auctioned properties in these seven months since November 2017, and it is a lengthy and difficult process for the successful bidders to get back their 25% money.
In a couple of cases out of ten cases, the defaulters have filed petitions in the high court. In remaining cases, the NMC is yet to issue self-certificate to the successful bidders for getting possession of the property.
In remaining around 90 properties out of 200 which was to be auctioned, the NMC has cancelled the auction process on time. As per the NMC officials, the defaulters turned up and paid the arrears so the auctions were cancelled.
The NMC launched auctioning process after its various methods for recovery of around Rs 378 crore arrears failed. The civic body also launched an amnesty scheme in which total amount of arrears and interest was supposed to be waived off. Of total 2.30 lakh defaulters, below 10,000 turned up under the scheme.
Then, the civic body decided to auction the properties of defaulters.
Now, the NMC has lined up around 2,247 properties for auction of which dates for 40 has been announced so far.