Civic body slaps Rs 5-cr property tax notice on college

The Municipal Corporation (MC) has slapped a property tax notice of Rs 5 crore on Government College for Girls (GCG), Ludhiana, a move that has shocked the education fraternity, which maintains that such institutions are exempted from property tax.

MC officials, however, said the college was liable to pay as it had been carrying out commercial activities on its premises. “If any institute organises commercial events and earns in crores, it is bound to pay property tax,” the MC authorities said.

The notice, pertaining to pending dues since 2014-15, has been sent via e-mail. The GCG authorities, however, said they were yet to receive its hard copy. “We have received only an e-mail. To the best of my knowledge, educational institutions are exempted from such taxes. It will be mentioned in our reply once the hard copy is received,” said Dr Suman Lata, principal of the GCG. “For the past several years no such issue was raised. Why the MC is now asking us to pay Rs 5 crore?” she questioned.

Educationists also opposed the move. “How can the MC ask for property tax from a government institution?” said Brij Bhushan Goyal, member of the Alumni Association of SCD Government College.

College carrying out commercial activities, it must pay: MC chief

Clarifying MC’s stand, MC Commissioner Aaditya Dachalwal said: “It is true that educational institutions are exempted from paying property tax. But the GCG organises Dasehra Mela and other exhibitions at a large scale, earning several crores annually through tenders. Such activities did not come under the exemption clause. Hence, it must pay the dues.”

Why the matter was not raised earlier, the Commissioner said. “It is a matter of self-appraisal. The college authorities should have voluntarily paid. Since they did not, the MC had to intervene,” he said.