Pune civic authority targets Rs 245 crore through sealed property auctions

In a proactive move to counter the slowdown in property tax collection, the civic administration is embarking on an ambitious plan to auction sealed properties owned by non-compliant taxpayers, with hopes of raking in around Rs 245 crore. The administration has set a formidable target of Rs 2,300 crore in property tax collection for the current fiscal year, which concludes in March 2024. By the end of July, PMC had managed to accumulate Rs 1,300 crore in property tax revenue. However, in the subsequent months of August and September, the civic body struggled, amassing a mere Rs 100 crore.
Vikram Kumar, PMC Commissioner and Administrator, announced that the civic administration would conduct a phased auction process following comprehensive legal due diligence. Civic officials have issued notices to defaulting taxpayers, subsequently sealing their properties temporarily before attaching them and officially adding PMC's name to the 7/12 abstracts. Critics have voiced their concerns about the civic administration's amnesty scheme for tax defaulters, arguing that it sends an erroneous message and adversely impacts overall income.
In an effort to bolster revenue streams, PMC has initiated proceedings to impose a property tax on the Metro Rail Authority. This tax will be levied on 18 stations, two depots, and various other properties owned by the Maha Metro Rail Corporation. PMC officials project that taxing Metro properties could yield approximately Rs 20 crore annually.
Within PMC's jurisdiction, approximately 12 lakh properties are subject to property tax. The civic administration provides special discounts to taxpayers who settle their dues prior to May 31 each year. Recovering a staggering Rs 8,000 crore from tax defaulters presents a monumental challenge for the civic administration. This includes collecting taxes from mobile towers and prominent defaulters such as industrial entities, commercial complexes, IT parks, and hospitals.
The aggressive approach of auctioning sealed properties serves as a warning to defaulters and a reminder of their financial obligations to the city. The civic administration's commitment to streamlining tax collection and holding defaulters accountable is evident in its actions. As it enters this challenging phase of tax recovery, PMC is determined to meet its ambitious targets and secure the financial stability necessary for the city's growth and development.

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Pune civic authority targets Rs 245 crore through sealed property auctions

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