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The Ahmedabad Municipal Corporation (AMC) has decided to take strict action against property tax defaulters by adopting a "zero tolerance policy". In order to recover unpaid property taxes and interest amounting to over Rs 2,000 crore from around 5,000 properties, the AMC has started putting liens on properties whose owners have not paid their taxes despite receiving notices.
The first property to be seized is Bandhan Party Plot, owned by Iiva Khoda, who has failed to pay property taxes amounting to Rs 17.38 lakh. If the property owner does not respond to the lien within 60 days and fails to pay the dues, the lien will become permanent, which means that the property cannot be sold without paying the tax.
Chairman of the AMC's revenue committee, Jainik Vakil, has stated that the AMC is currently drawing up a list of tax defaulters and will spare smaller defaulters. However, big defaulters are urged to come forward and pay their dues. Vakil also mentioned that the AMC plans to prepare a standard operating procedure for imposing liens in the future.
The move to put liens on properties is expected to compel defaulters to pay their dues along with the 18% interest rate mentioned in the lien. The AMC's decision to adopt a "zero tolerance policy" against tax defaulters is expected to reduce the number of defaulters and recover the outstanding taxes owed to the corporation.
In a related development, the Ahmedabad division of Western Railway has agreed to pay Rs 13.05 crore to the AMC after a long-pending dispute over property tax or service charge. The railway has also agreed in principle to pay the outstanding amount after reconciliation of railway property and charges due. The AMC has also demanded service charges of Rs 19.81 crore from government offices including those of the Railways, Bharat Sanchar Nigam Limited (BSNL), income tax, sales tax, Isro, the airport, and the Employees’ State Insurance Corporation (ESIC).
The AMC's decision to put liens on properties is a significant step towards reducing the number of tax defaulters and increasing revenue for the corporation. The move will also ensure that property owners pay their dues along with the 18% interest rate mentioned in the lien. The AMC's "zero tolerance policy" against tax defaulters is expected to deter people from defaulting on their property taxes in the future. The move is also expected to promote a culture of tax compliance and increase revenue for the corporation, which can be used for the development of the city and its infrastructure.
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