Pune: PCMC Faces Rs 60 Crore Revenue Loss After Massive Encroachment Demolition Drive
Reported by Varad Bhatkhande
Pimpri Chinchwad, 18th February 2025: The Pimpri-Chinchwad Municipal Corporation (PCMC) is facing a significant financial setback of approximately Rs 60 Crore following its recent encroachment demolition drive in Chikhali and Kudalwadi areas. The operation, which targeted unauthorized scrap warehouses and hundreds of businesses and small industries, has inadvertently impacted the PCMC’s property tax revenue.
From 8th to 14th February, the PCMC conducted a massive demolition drive, razing over 3,000 unauthorized constructions and tin sheds across a 1,000-acre area in Chikhali-Kudalwadi. While these businesses were operating without proper authorization, many were regular property taxpayers, contributing substantially to the PCMC coffers.
The demolition has not only resulted in significant losses for business owners and entrepreneurs but has also deprived the PCMC of an estimated Rs 60 Crore in property tax for the current fiscal year. Many of the demolished structures were registered with the PCMC’s Taxation and Tax Collection Department, with some property owners having already paid their taxes for the current year.
Business owners and entrepreneurs are now accusing the government and PCMC administration of carrying out the operation incorrectly, citing extensive damage to machinery, equipment, and materials. The action has effectively halted their operations, affecting not only business owners but also workers in the area.
Adding to the complexity of the situation, the PCMC’s taxation and tax collection department is holding several cheques submitted by property owners from the affected areas for payment of tax arrears. With the properties now demolished, there is little chance of realizing this revenue, further compounding the financial loss for PCMC.
While the exact number of cheques held by the taxation and tax collection department has not been disclosed, officials have confirmed that there are many such cheques in their possession.
