2k Tax Defaulters Under Mc Lens, Properties Likely To Be Attached, ET RealEstate

November 2, 2023

CHANDIGARH: After repeated demand notices, the municipal corporation (MC) is now all set to start attachment proceedings against top 2,000 commercial and residential property tax defaulters.

“Most of the defaulters have failed to deposit the dues within the stipulated time period. As per Section 138 of the Municipal Act, the civic body can initiate attachment proceedings. We have identified 2,000 defaulters in terms of the amount pending and action will be initiated against them first,” said an official.

Section 138 of the Municipal Act says that the MC can recover any sum due on the amount of tax payable, together with costs of recovery, by attachment and sale of a defaulter’s immovable property.

“Most of the unpaid dues have been aggregated over the past several years. The MC has been taking stringent steps to recover them. Around Rs 150 crore is pending in property dues, of which around Rs 8 crore is from residential properties alone,” said a senior official.

In the last financial year, the MC had issued attachment orders for 339 buildings. The MC had also sealed 17 properties and de-sealed 13 after they had deposited the dues.

Earlier, the civic body had offered rebate of up to 20% if tax was paid between April 1 and May 31.

After the rebate period ended, an assessee was liable to pay a 25% penalty and interest at 12% per annum is levied on the due tax from the date of issue of the tax bill to the date of actual payment.

“After the rebate period ended, the demand notices were sent and multiple opportunities given to property owners to pay their dues for the current and for the previous financial years also. But after many failed to comply with the directions, the MC is now left with little choice but to start the attachment proceedings,” said the official.

  • Published On Nov 2, 2023 at 03:00 PM IST

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