Pune: PMC Eyes Slum Businesses for Rs 100 Crore Revenue Boost

Pune, 20th January 2025: After struggling to recover dues from large defaulters, the Pune Municipal Corporation (PMC) is now turning its attention to businesses operating in slum areas. The civic body has announced plans to impose commercial taxes on these enterprises in an effort to boost revenue.

“To assess the potential for revenue generation, we will conduct a survey of businesses located in slum areas. Subsequently, tax bills will be issued to the identified commercial properties,” stated Madhav Jagtap, the head of PMC’s property tax department.

PMC aims to generate an estimated ₹100 crore through this initiative. According to officials, Pune has 486 slums, while Pimpri-Chinchwad, under the Pimpri Chinchwad Municipal Corporation (PCMC), accounts for 71 slum areas.

Despite this move, civic activists have raised concerns about the PMC’s priorities. Many believe the corporation should first focus on recovering dues from major defaulters, including mobile towers and properties embroiled in legal disputes.

Vivek Velankar of Sajag Nagrik Manch emphasized the need for stricter measures against habitual defaulters. “PMC’s total pending property tax dues stand at approximately ₹10,000 crore, out of which ₹3,500 crore is owed by mobile tower companies. Regular amnesty schemes have allowed repeated defaulters to evade payments. It’s crucial for the civic body to implement policies that ensure such defaulters are not rewarded with exemptions,” Velankar remarked.

He also urged the civic administration to introduce incentives for regular taxpayers as a way to encourage compliance. “Recognizing diligent taxpayers could motivate others to pay their dues on time and increase overall tax collection,” he added.

Currently, PMC levies property tax under Section 128A (1) of the Maharashtra Municipal Corporations Act, 1949, which covers components such as general tax, conservancy tax, sewage tax, and street tax.

Efforts to rehabilitate slum dwellers under the Slum Rehabilitation Authority (SRA) have also been ongoing. Since the SRA’s inception in 2005, approximately 11,000 slum residents—including both residential and commercial establishments—have been rehabilitated in Pune.

As per SRA data, 70 projects have been completed within Pune and Pimpri-Chinchwad, aiming to reduce the prevalence of slum areas through systematic redevelopment.