The Times of India            04.02.2014

Nagpur Municipal Corporation starts attaching properties of tax defaulters

NAGPUR: Those who have not paid their property tax, and those who have not brought their properties under the tax purview, are set to face serious action this fiscal. Facing revenue deficit, Nagpur Municipal Corporation (NMC) has commenced a drive to take action against such defaulters over the last few days. This drive was otherwise supposed to be launched in March.

Nehru Nagar zone attached five open plots at mouza Harpur for not paying the property tax. Assistant commissioner Mahesh Moroney said tax was due on the five plots since 1987 and 2000. "Tax of Rs79,590 was due on two plots and Rs73,481 on three plots. Attachment drive will continue everyday from now onwards. Even structures will be attached in case of non-payment of tax," he said.

Moroney added that action was also initiated against properties not registered under property tax purview. "Survey revealed that over 1,500 open plots are yet to come under tax purview, despite the passage of 20-30 years. This is a very serious violation of norms. These plots are situated in Dighori, Harpur, Bidipeth and Chikli Khurd. Property tax of around Rs1.50 crore can come from these properties. Ultimatum of one week has been given to all plot owners. All plots will be attached in case the owners do not apply for property tax assessment," he said.

Similarly, other nine zones also kicked-off the drive to take action, especially against taxes not paid from last few years.

The action of attachment of properties will not be taken against taxpayers if only the tax of current fiscal is overdue. But taxpayers will have to pay 2% interest per month for delay in payment of tax since January 1.

The revenue deficit due to setback from local body tax is hounding the NMC. Besides, revenue from property tax is not increasing according to expected ratio. Property tax of Rs106.06 crore was recovered as on December 31 as against total demand of Rs315 crore.