Pune: Property Tax Rates in Question After Uruli Devachi, Fursungi Exit PMC Limits

Pune, 4th December 2024: After Uruli Devachi and Fursungi were excluded from the Pune Municipal Corporation (PMC) limits and designated as separate municipal councils, questions are now being raised regarding property tax rates and arrears for these areas. The administrators of the newly formed municipal councils have sought detailed information from the PMC regarding property registrations and property tax records in these villages.

The separation came after sustained demands from residents, who argued that the property tax levied by the PMC was excessive. Now, residents are eager to know what rates the new municipal councils will impose and how the arrears under the PMC’s jurisdiction will be addressed.

Currently, around 75,000 properties in these villages are recorded under the PMC. The Tax Collection Department has submitted a proposal to the Municipal Commissioner, seeking guidance on whether to share this data with the new municipal councils.

When Uruli Devachi and Fursungi were incorporated into the PMC in 2017, property tax rates transitioned from the lower Gram Panchayat levels to PMC rates. Initially, taxes were levied at a gradual increase of 20% annually. By 2023, residents were being taxed at the full PMC rate.
For Uruli Devachi, the property tax demand for 2024-25, including arrears and the current year, stands at ₹136.86 crore. However, only ₹2 crore has been recovered. In Fursungi, the tax demand is ₹254.55 crore, with a collection of ₹30.06 crore this year. Combined, the two villages owe around ₹358 crore in arrears, while the PMC has recovered ₹32 crore to date.

The issue of how the recovered ₹32 crore and outstanding arrears will be handled remains unresolved. Discussions between the PMC and the new municipal councils are expected to determine whether this responsibility will transfer to the councils or stay with the PMC.