Illegal structures in state to attract double penalty

Illegal constructions in Maharashtra-except Mumbai-will invite a double penalty henceforth. The state Cabinet has decided on Wednesday to impose a penalty twice the property tax of an unauthorised structure-residential, commercial, or any other-in...

MUMBAI: Illegal constructions in Maharashtra-except Mumbai-will invite a double penalty henceforth. The state Cabinet has decided on Wednesday to impose a penalty twice the property tax of an unauthorised structure-residential, commercial, or any other-in cities barring Mumbai.

The changes will form part of the amendments to the rules governing municipal corporations, municipal councils and industrial townships, which would be moved during the monsoon session of the state legislature, sources told ET.
However, the provision for a double penalty does not mean regularisation of illegal structures, according to officials. “So long as the illegal structure exists as unauthorised construction, its owner or occupant will have to pay twice the property tax as penalty,” an official said.

“The double penalty has been proposed as a disincentive to illegal structures. There have been a number of illegal structures in cities and townships across the state, the most notorious of them being Ulhasnagar and Kalyan-Dombivli,” said an urban development official.

In Mumbai, the proposal for double penalty will have to wait until the government accepts the capital value system of property tax. A bill proposing this change is pending with a legislative sub-committee. “This proposal is part of the Bill and will come into force once it is passed,” the official said.

Amendments will be introduced in the Bombay Provincial Municipal Corporation Act, which governs a majority of civic bodies, City of Nagpur Corporation Act, and other acts governing municipal councils and industrial townships.

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Though the civic bodies are authorised to charge property tax from illegal structures, the recovery has been sluggish, according to sources. “A mandatory legal provision would force civic bodies to improve recovery of tax,” the official said.
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