Rs 200-cr property tax dues: Chandigarh MC starts preparing list of defaulters

As the outstanding amount of property tax has crossed over Rs 200 crore, the Municipal Corporation Chandigarh has started the process for preparing a fresh list of defaulters with updated amount after calculating the tax on the basis of the revised rates.

Ramneek Singh Bedi, chairman of house tax committee of the MC, said that a special meeting of the committee would also be held soon in which the issue of the outstanding amount would be discussed with the members. The strategy will be prepared for the recovery and will be listed for the General House meeting.

Sources said that the updated list would focus on the big defaulters like the PGI and Panjab University as they are yet to pay over Rs 90 crore despite receiving several notices in the past. They further said that after the revision in the rates of the property tax for residential and commercial properties, the amount is likely to get enhanced significantly. Once the list is ready, the Municipal Corporation will start sending notices to the defaulters.

Besides Panjab University, PGI and Punjab Engineering College, there are many government departments against whom crores are pending in dues. Various departments of Punjab, Haryana and UT are delaying the payment of tax for different reasons. The sources said that over Rs 100 crore were under litigation or disputed. Efforts will also be made to speed up trials in the cases of recovery.

For the first time, the MC received over Rs 60 crore in the last two months when rebate was given to the people. This is almost double the amount that the civic body received during the corresponding period in the last financial year. The property tax amount is the biggest source of regular income for the civic body.

One officer of the MC said that if the outstanding amount was recovered, then the MC will get over Rs 300 crore in the financial year, which will definitely help it to overcome the financial crisis.

The municipal corporation is presently grappling with a severe financial crunch. All development projects have come to standstill and no project has been launched recently. Even road carpeting projects have been put on hold due to a lack of funds.