Controversy Surrounds Property Tax Imposition on Nanded City Residents by Pune Municipal Corporation

Pune, 18th December 2023: The independent housing project ‘Nanded City’ in Pune finds itself embroiled in controversy as the Pune Municipal Corporation (PMC) has initiated property tax collection despite alleged lack of municipal facilities. Residents have expressed dissatisfaction over the imposition of property tax, highlighting concerns about double taxation and the absence of corresponding amenities.

While Nanded City falls under the jurisdiction of the Pune Metropolitan Region Development Authority (PMRDA) from a housing project planning perspective, it has recently been included in the municipal limits, prompting the municipal corporation to impose property tax on its residents. ‘Apale Pune,’ an organization, has raised opposition to this tax imposition.

Nanded City Chairman and Managing Director, Satish Magar, stated that taxation began as a consequence of its inclusion in the Municipal Corporation limits. Magar argued that residents were granted concessions, emphasizing distinctions between lump-sum tax and property tax.

Under the Maharashtra Regional and Town Planning (MRTP) Act, Nanded City is developed akin to Pune Cantonment, functioning as a non-government partnership project. Residents question the rationale behind property tax, especially since they already pay a one-time maintenance and repair fee to Nanded City Development and Construction Company Limited.

Residents point out that the municipal corporation provides no facilities to the housing project, with residents procuring drinking water directly from the company. Road maintenance, sanitation, and street lighting are also managed by the company. Despite this, the municipal corporation levies tax for water and sewage treatment within the property tax, leading to allegations of double taxation.

In response, the municipal administration contends that residents are taxed for utilizing municipal facilities such as roads, birth and death maintenance, and crematorium services developed by the municipality.

Former corporators Ujjwal Keskar, Suhas Kulkarni, and Prashant Badhe have called for transparency, urging the municipal corporation to refrain from hasty tax imposition and publish comprehensive information about the project on its website.

Ajit Deshmukh, Head of Department, Property Tax, PMC, clarified that the Municipal Corporation has the legal right to levy property tax under the Township Act of the State. He emphasized that property tax is distinct from the lump-sum maintenance fee and is applied in accordance with the law. Additionally, 33.50 percent of the amount collected has been remitted to residents as per the Township Act, with residents required to pay property tax for the use of other municipal facilities.