Hyderabad, Dec. 19: Tax payers are crying foul over the fact that the Greater Hyderabad Municipal Corporation (GHMC) has levied a penalty on property tax without serving notices to the concerned tax payers. In fact, several property owners have not received notices till date.

The contract of issuing the notices was given to the postal department but the officials of the department claim that many of the addresses that the GHMC provided are incorrect.

The GHMC had transferred the job of issuing notices to the postal department following complaints against the manner in which the GHMC was issuing property tax bills.

There are around 12 lakh property tax payers in Greater Hyderabad, of which, 2.50 lakh have paid their tax before October 31. Notices were to be served to the remaining property owners but not even 30 per cent of the property owners were served with notices.

As per the Municipal Corporation Act, the tax officials can levy an interest of two per cent on the total tax along with arrears if the same is not paid by the due date. Therefore, the officials of the tax wing at the GHMC are asking property owners to cough up an interest or penalty for late payment.

According to Mr Jayabhushan Rao, a taxpayer from Ameerpet, “Every year, I pay my tax within 15 days after I receive the notice for the same. I pay an annual amount of `7,180 as property tax but this year, I still haven’t received a notice. However, two days ago, an official of the GHMC came to my house and asked me to pay a penalty along with the principle tax amount.”

Meanwhile, the officials of the GHMC said that the issuance of notices is only a formality to remind taxpayers of the due date and it is not mandatory. “Taxpayers know the due date and have to pay their property tax on time or pay the penalty for late payment. For example, if the electricity bill is not paid on time, the supply is disconnected with or without serving an advance notice,” said the additional commissioner of the GHMC (finance), Mr Hari Krishna.