The Pioneer  02.12.2010

Staff Reporter | New Delhi

Following the allegations and counter allegations between the Delhi Government and the MCD over recovery of property tax from rural areas and urbanised villages, the civic body on Wednesday declared no such tax will be levied over properties situated in rural areas or urbanised villages. Standing Committee Chairman Yogender Chandolia asked Municipal Commissioner KS Mehra not to send property tax notices to the owners.

“Under Section 177 of the Delhi Municipal Act, the Standing Committee has power to waive any tax, which the body is liable to collect. Exercising our rights under that Section, we can grant concession or exemption to anyone. Hence, I ordered no such notices will be sent to anyone in those areas. We will not allow collection of property tax from rural areas or urbanised villages in any case,” said Chandolia. The BJP leader further criticised the Delhi Government for misleading the people of Delhi and taking credit for relief being given to the village people.

The Standing Committee Chairman said the Government is trying to take credit of what the MCD has done. “We passed a resolution granting immunity to village people from property tax. The Government has not paid any heed to the five-point resolution passed by the Corporation during 2007-2010 in this regard. For making proper amendment in the law pertaining to the relief to people of those areas was to be proposed by the Delhi Government and it has not acted in that direction,” he said.

Chandolia also said on the contrary, Delhi Finance Minister AK Walia presented fudged figures of funds allocated to the body for development in rural areas and urbanised villages. “We have asked the Municipal Commissioner not to go ahead with the property tax notices. Despite that if the MCD still faces some difficulties; members of Standing Committee will make a representation before the Minister of Home Affairs, Lt Governor or even before the Chief Minister in this regard,” said the BJP Corporator.

On Tuesday, he alleged Walia has given wrong datas regarding the funds. He said the Government has promised to give a grant of Rs 50 crores for development of unauthorised colonies for the year 2010-11 and only `37.50 crores have been received so far under this head.

“The MCD is taking care of sanitation in 1,539 unauthorised colonies. In all since 1998-2011, only Rs 569 crores have been given to the MCD for the purpose. But it is wrongly informed that they have given Rs 3,326 crores to the MCD for development in unauthorised colonies. It means they have diverted funds to the tune of Rs 2,755 crores which the Finance Minister has admitted had been given to the MCD as it got only Rs 569 crores in actual,” clarified the BJP leader.

Hindustan Times  01.12.2010

The deadline for submitting suggestions and objections to the Brihanmumbai Municipal Corporation (BMC) over the proposed capital value-based property tax system ended on Tuesday. The BMC received 215 objections. Officials said most of the objections raised two major concerns — the system would take into account the property’s built-up area and not the carpet area, and the use of the ready reckoner to value the property. The objections will be handed over to a three-member committee on property tax, comprising former municipal commissioner DM Sukhtankar, retired bureaucrat DN Chaudhary and architect Roshan Nanavati. They will study each objection and decide if the system should be changed.

The committee is expected to draft a report within 10 days. The BMC hopes to implement the system from March 2011, with retrospective effect from April 2010.

A senior civic official said: “Most objections pertained to built-up area being considered, while others protested against ready reckoner rates being the yardstick. The problem is that the Stamp Duty Act says the ready reckoner should be referred to. So, we won’t be able to heed either of these suggestions.”

The official said there might be some changes. “We also received a few suggestions that said the system should not apply to old, rented properties, mostly in the island city. There were also requests to change the weightage accorded to certain factors. Such changes are likely to happen, if the committee agrees,” he said.