About 8,000 property tax defaulters owe Chennai civic body Rs 300 crore
Senior officers say that they can issue a default distraint warrant and seize the property of a defaulter. But this is a last resort and a long-drawn process.
By Shruti Suresh, TNN |
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CHENNAI: Some 8,000 defaulters owe the Greater Chennai Corporation Rs 300 crore in property tax dues, but the civic body refuses to name them. The total property tax dues amount to Rs 1,050 crore and civic officials rue that the law is not much help.
Senior officers say that under the provisions of the Chennai City Municipal Corporation Act, 1919, they can, of course, issue a default distraint warrant and seize the property of a defaulter. But this is a measure of last resort and a long-drawn process.
There are no provisions to arrest defaulters or to termporarily seal a premises for non-payment of property tax.
Two weeks ago, the civic body’s revenue department had placed a dumpster outside the Greams Road head office of a big corporate house for non-payment of property tax dues of Rs 35 lakh but removed it within a day after the private party sought a week’s time to make the payment. Two weeks later, the civic body has yet to initiate any action though the corporate house is yet to pay up.
“Due to public shaming by keeping dumpsters, there has been an impact and defaulters are coming forward to pay. We will also involve other departments of the corporation – like health or buildings -- to take stringent action. If planning permission is sought and not furnished, electricity connection can be cut off or action can be taken on lines of the property being unauthorized,” said an official.
According to corporation sources, who asked not to be identified, half the dues are from those who own property in core areas of the city – in Teynampet, Royapuram, Adyar, Kodambakkam and Anna Nagar zones. “The maximum number of high-value defaulters are from core city areas under Teynampet and Royapuram zones with more than 3,000 defaulters who owe the civic body Rs 1 lakh or more,” said an official.
Sources added that after the revision in property tax, the department is seeing an inflow of Rs 4 crores a day as against Rs 2 crores a day earlier.
Senior officers say that under the provisions of the Chennai City Municipal Corporation Act, 1919, they can, of course, issue a default distraint warrant and seize the property of a defaulter. But this is a measure of last resort and a long-drawn process.
There are no provisions to arrest defaulters or to termporarily seal a premises for non-payment of property tax.
Two weeks ago, the civic body’s revenue department had placed a dumpster outside the Greams Road head office of a big corporate house for non-payment of property tax dues of Rs 35 lakh but removed it within a day after the private party sought a week’s time to make the payment. Two weeks later, the civic body has yet to initiate any action though the corporate house is yet to pay up.
“Due to public shaming by keeping dumpsters, there has been an impact and defaulters are coming forward to pay. We will also involve other departments of the corporation – like health or buildings -- to take stringent action. If planning permission is sought and not furnished, electricity connection can be cut off or action can be taken on lines of the property being unauthorized,” said an official.
According to corporation sources, who asked not to be identified, half the dues are from those who own property in core areas of the city – in Teynampet, Royapuram, Adyar, Kodambakkam and Anna Nagar zones. “The maximum number of high-value defaulters are from core city areas under Teynampet and Royapuram zones with more than 3,000 defaulters who owe the civic body Rs 1 lakh or more,” said an official.
Sources added that after the revision in property tax, the department is seeing an inflow of Rs 4 crores a day as against Rs 2 crores a day earlier.
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