Chandigarh: Rs 200-crore property tax outstanding; development projects come to a standstill

The recovery of Rs 200 crore from property tax defaulters has also become a major challenge for the Municipal Corporation. Various departments of Punjab, Haryana, Union Territory of Chandigarh, Panjab University, Post Graduate Institute of Medical Education and Research (PGIMER) and Punjab Engineering College are some the institutions that owe the MC over Rs 100 crores in property tax. Sources said payments worth over Rs 100 crore were stuck due to litigation or disputes.

A senior officer of the MC said they had been issuing notices to Panjab University and the PGI for depositing the amount, but in vain. These institutions are working for the public welfare so we cannot take coercive action like sealing them.

Dr Ramneek Singh Bedi, Chairman, House Tax Committee, said the outstanding property tax had become a serious issue. The Municipal Corporation has been grappling with a severe financial crunch. All development projects have come to a standstill and no new project is being launched. Even road carpeting projects have been put on hold due to the fund crunch.