NDMC seals properties over pending tax

Advertisement

New Delhi, March 2

The New Delhi Municipal Council (NDMC) has sealed several properties at Connaught Place for pending property tax payments.

The New Delhi Traders Association (NDTA) has opposed the NDMC’s action and questioned the method of tax calculation, terming it as “arbitrary billing practices”.

Action has been taken against 21 properties so far. Occupants in several of these properties have either made interim tax payments or have taken their cases to court. For now, about eight properties still remain sealed, an official from the NDMC Taxation Department said.

“Some of the pending taxes date back to the summers of 2000 and 2002. Occupants cannot enjoy the services provided and not pay taxes,” said the NDMC official. The top 100 defaulters collectively owe the civic body Rs 1,948 crore, posing a significant challenge to the NDMC’s revenue collection efforts.

The authorities have said that the occupants must make an interim payment of 25-30 per cent upfront and commit to clearing the remaining dues in five to 10 installments with an affidavit, if they want their properties to be de-sealed.

However, NDTA president Atul Bhargava suggested the need for a fair and transparent taxation system.

“The tax rate is approximately 27-28 per cent of the property’s rent and that is unjustified. The method of tax calculation by the MCD and the NDMC differs significantly. The NDMC method is challenging for the traders as it results in considerably higher taxes,” Bhargava said. He said the MCD calculates tax on the basis of unit area or the covered area of establishment.

Officials said the NDMC used to calculate tax based on unit area, but it was challenged in the court.

The sealing and de-sealing of properties has affected prominent establishments and brands like Levi, Nike and Mohanlal and Sons, along with several offices and cafes.