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BMC goofs up on property tax receipts

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The Times of India 03.12.2009

BMC goofs up on property tax receipts

MUMBAI: In a major glitch, the BMC has been issuing property tax receipts to housing societies in the name of the land owners. The land is in the name of the builder rather than the housing society in an overwhelming majority. The issuance of property tax receipts in the name of the land owner has triggered confusion across the city.

Vinod Sampat, an expert on co-operative laws, said the action showed utter callousness of the BMC towards citizens. "In just about 10% cases across the state has the land conveyance been done. The government, too, is not pushing the issue. Generally members of housing societies don't even know that the land hasn't been conveyed to them. The problem arises when the housing society is to be redeveloped or a loan is sought against the land,'' he said.

N A Pathan, chief assessor and collector, said a software glitch had caused the goof-up. "We are in the process of computerisation and this error occurred,''he said.

The BMC issues property tax bills in two cycles__six months apart. The bill includes charges for civic amenities except water. Normally, the BMC issues a single bill in the name of the society. The society committee has to collect the amount and remit it to the BMC. A few years ago, the BMC allowed bills for individual flat owners in societies where such a resolution was passed.

Vasant Patil, a resident of Ashok Nagar, Kandivli (E) said for the last three cycles residents of his society had received bills and receipts in the individual flat owners' name. "This time, the bill was issued in the flat owners' names but the receipts came in the name of the land owner. In other buildings in the area, the bills and receipts used to be issued in the name of the society's secretary and that of the land owner. This time, only the name of the land owner is mentioned,'' he said.

Patil wondered if this was BMC's ploy to deny residents the Rs 1 lakh insurance incentive provided by the civic body to ensure that citizens pay on time.

Pathan said the error had been rectified and the BMC would issue proper receipts next time. He, however, added that societies that seek corrected receipts would be given the same. "It is not possible to issue a corrected receipt to every housing society as we do not know how many receipts were wrongly printed,'' he said.