Pune Municipal Corporation To Auction Properties Over Unpaid Property Tax Arrears, First Phase To Begin Next Month
Pune, 25th September 2023: The Pune Municipal Corporation (PMC) has taken decisive action against property owners who have been avoiding payment of property tax arrears. In a bid to bolster its income streams, the PMC has decided to auction off a portion of these properties. Initially, 200 large properties out of a total of 1,618 properties in the city will go under the hammer in the first phase of this auction.
Municipal Commissioner Vikram Kumar stated, “The Property Tax Department has sealed 1,618 properties, and we plan to auction 200 properties in the first phase, commencing in October.”
The PMC faces increasing expenses, prompting a need to strengthen its income sources. The primary avenues of revenue for the corporation include construction development charges, GST refunds, and property tax.
For the fiscal year 2023-24, an estimated Rs 2,400 crores in property tax revenue is anticipated, with Rs 1,400 crores already accrued in the PMC’s coffers. The majority of this tax revenue comes from residential properties. Efforts are underway to enhance income from non-residential properties as well. Consequently, property owners who are delinquent in their tax payments are receiving notices, and their properties are being sealed.
Properties belonging to those who have settled their dues have had their seals removed. However, for those who continue to default on their tax payments, the PMC intends to recover the arrears by auctioning their properties.
Proceeds from the auctions will be used to settle the outstanding arrears, with any surplus amounts returned to the respective property owners. To date, the PMC has sealed a total of 1,618 properties, with the outstanding amount standing at Rs 96 crores 27 lakhs and 918 rupees.
The auction process will not be immediate for all the sealed properties. Priority will be given to properties located on main roads, prominent locations, and those free from litigation. Auctions will only proceed after completing various legal procedures, including property assessments, notifying concerned landowners, and public disclosures.
In preparation for the auction process, employees of the Property Tax Department have undergone training to ensure timely execution in compliance with legal requirements. The department recently concluded a workshop, and a meeting held today has established a time-bound schedule for the auctions.
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