Urban News

The Hindu - Delhi 12.08.2009

MCD to target tax defaulters

Staff Reporter

NEW DELHI: With its property tax collection falling Rs.400 crore short of target during the previous financial year, the Municipal Corporation of Delhi is planning to carry out a survey to identify defaulters, especially disguised commercial property owners, and net new categories including plush shopping malls that are not paying any tax to the civic agency at present.

A sum of around Rs.1,064 crore was collected as property tax for the year 2008-09 as against the targeted sum of around Rs.1,463 crore.

However, if the new plan is put in place, the civic body expects to realise a further Rs.500 crore from property tax.

Door-to-door survey

According to MCD Standing Committee deputy chairperson Rajni Abbi, “Most people who live near the North Campus and South Campus of Delhi University rent out their houses or convert a part of it into paying guest accommodation or hostels. They, however, do not pay any property tax. In order to increase our revenue collection, MCD officials need to go from door to door to identify such defaulters and charge commercial tax from them.”“The procedure of filing property tax also has to be simplified and streamlined if we want to bring more people under the tax net,” she added.

According to Leader of the House Subhash Arya, “One way of increasing property tax is by bringing commercial properties like malls, five-star hotels and guest houses under a separate category which can be taxed accordingly.”

Municipal councillors feel that in most cases the executive agency had failed to maintain and update the records of property tax collected in the recent past leading to inconvenience to taxpayers and revenue loss to the civic agency.

According to Leader of the Opposition J. K. Sharma, “There are some 25 lakh properties in the city but only 8.5 lakh are paying property tax. Moreover, about Rs.800 crore in tax is due from the government and other agencies including the Public Works Department, the Delhi Metro Rail Corporation and the Delhi Jal Board. Why is the MCD not initiating any proceedings to recover the tax due from these agencies?”

Amnesty scheme

The MCD had earlier announced an amnesty scheme under which taxpayers evading tax since the introduction of new unit area method five years ago would get waiver of penalty and interest if they pay the total amount due from April 1, 2004, by October 31 this year.

The Hindu - Delhi 12.08.2009

Centre, States asked to address water shortage

Legal Correspondent

New Delhi: The Supreme Court on Tuesday attributed the spurt in prices of essential commodities to the monsoon failure in many States, expressed concern over the plight of the common man and directed the Centre and States to take short-term measures to solve water problem on a war- footing.

A Bench of Justices Markandey Katju and A.K. Ganguly was hearing a public interest litigation petition.

The court had directed appointment of an expert committee for scientific research on tackling water shortage in the country.

During the resumed hearing on Tuesday on the petition filed by advocate M.K. Balakrishnan that sought court intervention on solving water shortage, Solicitor-General Gopal Subramaniam said the government-appointed Technical Experts Committee (TEC) on water solutions was conducting research on various aspects.

Mr. Justice Katju told the Solicitor-General that the TEC had done a commendable job. It could consider steps to alleviate the immediate crisis caused by scanty rainfall.

He pointed out that the “country is facing a terrible situation due to monsoon failure and rising prices, particularly of cereals and pulses used by the common man. States like Punjab, Uttar Pradesh, Bihar, Orissa and Andhra Pradesh were the worst hit by the water scarcity.”

Mr. Subramaniam assured the court that the government was fully alive to the situation and all possible steps were being taken to bring down prices.

Earlier, the Centre, in its affidavit, informed the court that besides setting up the TEC, it was launching a “WAR” mission for dealing with the water problem in various parts of the country. WAR stands for Winning (water from sustainable resources), Augmentation (of quality of water from available and accessible sources) and Renovation for recycle.

In its order, the Bench said: “The committee has done a commendable job. In the report they have gone into great detail on how to solve the water problem in the country. We request the committee to continue to work on a war-footing and try to stick to the schedule.

"The Central government and all State governments are directed to provide all help — financial, technical and administrative — to the said committee so that the great water problem in the country can be solved.”

The Bench said: “We may also mention that at present there seems to be a monsoon failure in large parts of India because of which people are suffering. We request the committee to consider measures to alleviate the immediate crisis which people in large parts of the country are facing.”

The Bench directed the matter to be listed for further hearing on October 20.