Pune Municipal Corporation Faces Auction Setback as 7 Properties Remain Unsold; 21 Tax Defaulters Settle Dues

Pune, 6th February 2024: The Pune Municipal Corporation (PMC) scheduled an auction for 32 commercial properties belonging to tax defaulters on Monday. However, 21 property owners managed to clear their dues, amounting to Rs 1.83 crore, leading to the removal of their properties from the auction list. Surprisingly, none of the seven properties put up for auction garnered any interest from bidders.

Ajit Deshumkh, the head of PMC’s property tax department, expressed that not a single bidder came forward for the seven properties, prompting the decision to reduce their prices by up to 25%. The PMC plans to reintroduce these properties to the market in a subsequent sale.

Before the auction, the civic body had anticipated generating Rs 16.02 crore from the sale of all 32 properties. However, with the removal of 21 cleared properties and the lack of interest in the remaining seven, the expected revenue has been considerably reduced.

Civic officials disclosed that 21 property owners settled their dues, while two made partial payments. Additionally, two properties were entangled in legal disputes, rendering them ineligible for the auction process.

A senior PMC official mentioned that any surplus amount collected beyond the tax dues during the auction of the seven properties would be returned to the owners. To claim the surplus, owners must submit applications within six months; otherwise, the funds will be deposited into the civic administration’s accounts.

Auctioning was considered the final recourse for tax recovery, following previous measures such as issuing notices and temporarily sealing properties. In cases of non-response, the PMC took possession and updated its records on the 7/12 abstracts of the properties.

Property tax in PMC is collected either half-yearly or annually, with a 10% discount available to those who pay before May 31. The civic data reveals approximately 12 lakh properties within PMC are liable for tax payments, with significant defaulters including industries, large commercial complexes, IT parks, and hospitals. Currently, the PMC faces the challenge of recovering Rs 8,000 crore from total defaulters within its jurisdiction.