Deccan Chronicle 02.01.2011
GHMC to levy property tax on illegal structures
January 2nd, 2011
an. 1: The
Greater Hyderabad Municipal Corporation (GHMC) is planning to levy
property tax on buildings that have come up in an unauthorised manner on
government, ceiling, assigned and notary lands. The corporation hopes
to raise over Rs 50 crore by bringing such properties under its tax net.
Among the properties that are under the GHMC scanner are
numerous buildings that have come up in Gurukul Trust Lands at Madhapur.
GHMC officials point out that the civic body is providing all amenities
including roads, street lights, garbage removal and other
infrastructural facilities to the localities in which these illegal
constructions were located.
However, a majority of the owners of these buildings are
not paying property tax to the GHMC. “Owners of these buildings are
using the civic amenities being extended by the GHMC,” said a senior
official.
The GHMC decided to tax the buildings after some
enterprising officials dug out a judgement of the Supreme Court which
says that levying property tax does not confer any right or title on the
land in question. The standing committee of the Greater Hyderabad
Municipal Corporation has also approved the proposal to bring
unauthorised constructions in government and ceiling lands under
property tax net.
It asked officials to send a proposal to the government
seeking permission to impose property tax on such buildings. The GHMC
additional commissioner (finance and revenue), Mr Harikrishna, said the
general body of the GHMC has approved the proposal. “We are writing to
the government to allow us to levy and collect tax on these buildings,”
he added.