NAGPUR: What Nagpur Municipal Corporation is promoting as a New Year gift in the form of an amnesty scheme for property tax defaulters, sources term it as a pre-poll sop ahead of the civic body elections due this year. The scheme offers 80% waiver on penalties and interest, reducing the outstanding property tax amount of Rs 850.1 crore, along with Rs 770.45 crore in fine and interest, under the Property Tax Amnesty Scheme 2024-2025.
This initiative will be in effect from January 1 to March 31, 2025.
A day earlier, the NMC announced a similar amnesty scheme for water bill defaulters.
As on December 31, 2024, a total of 2,86,399 property owners haven’t paid a cumulative Rs 850 crore property taxes apart from Rs 770.45 crore due to be charged as interest and penalties. Of this, Rs 30.73 crore is outstanding in taxes from govt and semi-govt properties, and Rs 227 crore is embroiled in disputed cases.
The NMC, guided by municipal commissioner Abhijeet Chaudhari, introduced the scheme aimed at providing relief to property tax defaulters. This amnesty offers significant reduction in penalties and fines levied on outstanding amounts, providing an opportunity for defaulters to clear their dues at a reduced cost.
Maharashtra Municipal Corporations Act, 1949, mandates imposition of penalties or interest if property tax is not paid within the prescribed time. Recovery actions such as attachment or seizure of movable or immovable property can also be enforced.
The amnesty scheme is part of state govt’s efforts focusing on recovering significant arrears ahead of the crucial civic elections, sources said. “Under the scheme, NMC is waiving 80% of the penal interest (Rs 770.45 crore), which comes to around Rs 616.36 crore. Now, the NMC aims to recover at least a large portion of the outstanding property tax, with an estimated target of nearly Rs 200 crore, including the principal and 20% of penalty/interest,” explained a senior official privy to the development.
“This scheme encourages defaulters to settle dues within the given time frame. However, those who fail to take advantage of this opportunity will face enforcement actions under relevant provisions of the Maharashtra Municipal Corporations Act,” the official said. The NMC clarified that any payments made before the launch of this scheme or after its conclusion will not be eligible for the waiver, and no claims for refunds will be entertained.
Source Homevior.in
