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Taxation

KMC spurned tax scam whistleblower

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The Times of India         07.12.2010

KMC spurned tax scam whistleblower

KOLKATA: Kolkata Municipal Corporation (KMC) authorities severed ties with a whistleblower who alerted them about the tax scam now rocking the civic body.

Instead, KMC sheltered and re-employed the suspects and swept the matter under the carpet after severing ties with the whistle-blower. It was only when an elderly taxpayer from Behala came to verify her documents that the can of worms was prised open.

Pranjit De, owner of private firm Prosoft Engineering that supplied data entry operators to KMC, realized something was terribly wrong over four months ago. Four of the 40 operators supplied by him were functioning in a suspicious manner and he feared there were financial irregularities. In early September this year, De alerted KMC officials on a probable' tax scam at Tolly Tax department in Gariahat and Jadavpur and provided vital clues that indicated a probable misuse' of passwords by four data operators and even called for their removal.

To De's surprise, the alert did not send alarm bells ringing at the civic headquarters. He followed it up with several reminders to KMC top brass but the requests fell on deaf ears. Instead, civic authorities decided to terminate the services of Prosoft Engineering while retaining its 40 data entry operators, including the four persons who were under suspicion. All four were re-engaged in the same departments under three other agencies. One of these agencies was in operation at Tolly Tax when another property tax scam was unearthed in 2005.

"It is quite strange that the KMC authorities did not pay heed to my signal. I wanted four of my representatives to be shifted from Tolly Tax. I had recommended such a move because I anticipated a serious anomaly after going through a series of experiences at Tolly Tax where touts rule the roost," De said. He had even conceded within his close circles that he could land in trouble if the operators were not removed from Tolly Tax.

What exactly had De learnt that compelled him to press the panic button and seek the transfer of his own employees to a non-revenue department at KMC? Sources in the assessment collection department said that someone among his employees had tipped him off about a racket involving a section of Prosoft Engineering staff and KMC employees.

"Once alerted by his own staff, De became extremely nervous and wanted to wind up his job at the Tolly Tax department," a KMC revenue department official said. When De continued to voice his concern on a possible scam, the agreement with his firm on supply of 40 data entry operators to assessment collection centres located at Gariahat, Jadavpur, Tollygunge and Behala was terminated.

Incidentally, when De's data operators first began working in 2006, they were given access to the official password that empowered them not only to record transactions but also look at minute details of property tax collection and transactions. The internal audit objected to the move but the warning of the chief municipal auditor was ignored.

The racket that was unearthed at Tolly Tax has already spread its tentacles in some KMC offices. Reports of property tax anomalies are pouring in from other centres like Jadavpur and Behala. The recent scam unearthed at a Behala KMC office is linked to the same racket, a section of KMC assessment department officials conceded.

 

MCD wing not happy with hike in property tax

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The Pioneer  07.12.2010

MCD wing not happy with hike in property tax

Staff Reporter | New Delhi

The proposed hike in property tax by Municipal Commissioner KS Mehra, is receiving a stiff resistance from the deliberative wing of the Municipal Corporation of Delhi (MCD). According to sources, to overcome the funds scarcity in the civic body, the executive wing has planned to raise the rate of property tax in certain category in the Budget of next financial year (2011-12) but elected members of the body is reportedly opposing the move saying that it would unnecessarily put burden on the citizen of Delhi.

Sources informed, as per the proposal the entire MCD area will be divided into two categories as far as tax rate is concerned, wherein category A, B, C, D, and E will be clubbed together and will pay to pay 15 per cent property tax and category F, G, H will be charged 10 per cent. Presently category A and B are charged 12 per cent, C, D and E are charged 11 per cent and F, G and H are charged 7 per cent.

The MCD commissioner will present its new Budget on Wednesday. A meeting was held for finalisation of the MCD Budget for the next fiscal year, which was attended by Delhi Mayor Prithvi Raj Sahwney, Deputy Mayor Rajesh Gehlot, Leader of House Subhash Arya, Standing Committee chairman Yogender Chandolia and deputy chairman Standing Committee Sarita Chaudhary.

Last Updated on Tuesday, 07 December 2010 05:43
 

GHMC seeks Hitec tax control

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The Deccan Chronicle  07.12.2010

GHMC seeks Hitec tax control

Hyderabad, Dec. 6: Cyber Towers in Hitec City, IT companies in Gachibowli and industrial areas of Katedan and Patancheru are within the limits of the Greater Hyderabad Municipal Corporation, yet the civic body does not have powers to collect property tax of buildings in these areas.

It is the Andhra Pradesh Industrial Infrastructure Corporation that is collecting property tax in Hitec City and 14 other industrial areas located in GHMC limits.

The APIIC transfers to GHMC only one-third of the tax collected in 14 industrial areas and 50 per cent of the total property tax on buildings in Hitec City and Gachibowli. The GHMC gets `10 crore per annum towards its share of taxes on these buildings from APIIC.

Corporation officials said that even building permission in these areas is given by APIIC.

The GHMC wants to take over control of at least 14 industrial areas that are currently under the Industrial Area Local Authorities (IALA), an arm of APIIC. The GHMC standing committee has passed a resolution to this effect.

The GHMC additional commissioner (finance/revenue), Mr S. Hari Krishna told this correspondent: “There are no rules or provisions in the Hyderabad Municipal Corporation Act to allow IALAs to give building permission and collect property tax. We have written to the Municipal Administration and Urban Development department to take over the powers from APIIC and transfer it to.”

The IALAs were formed in 1994 by APIIC for looking after land allotment and granting permission to industrial areas that were located in areas surrounding the city. With complaints from industrialists that they were facing problems in getting permissions from erstwhile municipalities and gram panchayats, the state government then empowered IALAs to grant building permission and collect property tax.

Officials said if IALAs and other local areas in Greater Hyderabad limits are transferred to GHMC, the civic body can raise nearly `100 crore in building fees and property tax per annum, and reinvest the same in the improvement and development of civic infrastructure in these areas.

Last Updated on Tuesday, 07 December 2010 05:39
 


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