MUMBAI: Is the BMC allowing people who have broken the law to get away in order to achieve its ambitious target to raise Rs 3,465 crore more revenue in the coming financial year?
Civic observers, commenting on the BMC Budget 2020-21 presented on Tuesday, said the administration wants to regularise unauthorised use of flower beds, lofts and car decks and encroachment of non-habitable areas in several city buildings by charging a fee. It has also provided a similar option to those who took 4,177 civic properties, including buildings, on lease, and allowed construction on some of its 3,668 plots, which have been encroached by slums.
The BMC is struggling to raise its income due to slowdown in the construction industry and poor property tax collection. In the current fiscal, the BMC has revenue income target of Rs 24,983 crore, which it is struggling to achieve before March 31. But it has set a target of Rs 28,448 crore for the coming financial year, which an official said is not practical.
The BMC has given most of the additional capital revenue generation task to three key departments—estates, that looks after its properties, assessment and collection (property tax collection), and development plan, which relates to building construction related work. Officials stated that these three departments will be under tremendous pressure to meet the targets.
Civic officials said the BMC introduced two crucial policies and is waiting for general body’s approval to implement them for generation of more income from its own properties. The BMC had leased 4,177 properties spread over 1,581 acres to people and entities for a long period. In many instances, the lessee have carried out illegal extensions and constructions without permission. The BMC was not renewing the lease of many such buildings and not allowing some of them to go for redevelopment due to disputes over illegal alterations. Now, the BMC has decided to renew the lease of such lessee (tenants) after giving them a three-year window period to regularise the unauthorised construction. Similarly, the BMC had given 3,668 vacant plots —measuring a total 158 acres—to people/entities on rent, and some of them have been encroached upon. According to the rule, no construction can be allowed on such plots, but the BMC plans to allow development of the encroached plots.
In property tax, the BMC wants to earn Rs 1,500 crore more by pursuing those who are not paying Rs 15,000 crore dues pending for years either due to court cases or dispute over the tax amount.
Civic observers, commenting on the BMC Budget 2020-21 presented on Tuesday, said the administration wants to regularise unauthorised use of flower beds, lofts and car decks and encroachment of non-habitable areas in several city buildings by charging a fee. It has also provided a similar option to those who took 4,177 civic properties, including buildings, on lease, and allowed construction on some of its 3,668 plots, which have been encroached by slums.
The BMC is struggling to raise its income due to slowdown in the construction industry and poor property tax collection. In the current fiscal, the BMC has revenue income target of Rs 24,983 crore, which it is struggling to achieve before March 31. But it has set a target of Rs 28,448 crore for the coming financial year, which an official said is not practical.
The BMC has given most of the additional capital revenue generation task to three key departments—estates, that looks after its properties, assessment and collection (property tax collection), and development plan, which relates to building construction related work. Officials stated that these three departments will be under tremendous pressure to meet the targets.
Civic officials said the BMC introduced two crucial policies and is waiting for general body’s approval to implement them for generation of more income from its own properties. The BMC had leased 4,177 properties spread over 1,581 acres to people and entities for a long period. In many instances, the lessee have carried out illegal extensions and constructions without permission. The BMC was not renewing the lease of many such buildings and not allowing some of them to go for redevelopment due to disputes over illegal alterations. Now, the BMC has decided to renew the lease of such lessee (tenants) after giving them a three-year window period to regularise the unauthorised construction. Similarly, the BMC had given 3,668 vacant plots —measuring a total 158 acres—to people/entities on rent, and some of them have been encroached upon. According to the rule, no construction can be allowed on such plots, but the BMC plans to allow development of the encroached plots.
In property tax, the BMC wants to earn Rs 1,500 crore more by pursuing those who are not paying Rs 15,000 crore dues pending for years either due to court cases or dispute over the tax amount.
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