Urban News

The Hindu 03.03.2010

Hyderabad Central seized, let off for property tax dues

HYDERABAD: Hyderabad Central, the mall at Punjagutta crossroads, was seized and later let off by GHMC on Tuesday after its property owner paid Rs. 1 crore as part payment out of the property tax arrears of Rs. 2.8 crore and promised to pay the remaining amount within a week. Central Zone Commissioner K. Bhaskar told presspersons on Tuesday that seizure took place after warrants were issued on the property also housing the PVR cinema.

The owner, who was not paying property tax since 2006, had given a written consent to pay the balance amount, therefore the warrant was lifted, he said.

Additional Commissioner (Finance) N. Satyanarayana said action was taken following all the due procedures as the owner had requested review of his case. “He sought tax revision as two cinema halls were vacant and fresh measurements were also made. But his request not to levy the 50 per cent hike as decided by the Government was rejected,” he explained.

The Hindu 03.03.2010

More than six lakh yet to pay property tax

Special Correspondent

HYDERABAD: While it did show an iron fist behind a velvet glove in acting against Hyderabad Central on Tuesday, GHMC or even the erstwhile MCH record on tackling property tax defaulters has been poor otherwise.

Each year at least Rs. 100 crore to Rs. 150 crore remain uncollected either from arrears or from ‘habitual defaulters’ – among them some top guns.

“Election work” is the oft quoted excuse for the pathetic collection from among the 14 lakh properties including household and domestic.

Defaulters identified

With less than a month for the payment deadline, more than six lakh cases have been identified in all the 18 circles that are yet to pay up including those with arrears! Till date, the collection is Rs. 350 crore and about Rs. 293 crore is to be collected as per bills raised by the finance wing.

“Defaulters amounts are due between Rs. 5 lakh till Rs. 4.5 crore or more. We have sent bills and later red notices to all of them. All Zonal and Deputy Commissioners to personally target top 60 defaulters in each zone/circle. Valuation officers and Revenue/Tax Inspectors too have been set targets for collecting other payments due,” said Additional Commissioner (Finance) N. Satyanarayana.

Even if 5,000 in each circle pay up their respective due amounts, at least Rs. 100 crore can be mopped up, he said. Central Zone Commissioner K. Bhaskar admitted that there was largescale property tax evasion in his area which has posh residential and commercial areas of Khairatabad, Banjara Hills, etc.

“Yes. There are influential people belonging to all categories among defaulters in each circle. We have put the entire list on our website. We are taking action as per law and not looking at the individuals”, said Mr. Bhaskar while declining to name the top defaulters.

However, tax payments from the Central government are unlikely to be realised because of a Supreme Court judgement while it was due from several departments of the State government. Exemption was also recently announced for some educational institutions.

It’s ridiculous that GHMC wants to hike tax to squeeze pliant and prompt tax payers to cover up its own failure to make defaulters cough up.