Pune Municipal Corporation To Auction 50 Commercial Properties In January To Recover Unpaid Taxes

Pune, 27th December 2023: In an effort to recover unpaid property taxes, the Pune Municipal Corporation (PMC) has identified and scheduled the auction of 50 commercial properties owned by tax defaulters in the first phase, set to take place in January.

Before resorting to auctions, the civic body employs various measures to collect outstanding property taxes, including issuing notices, attaching and temporarily sealing the properties. If payment remains elusive despite these actions, PMC takes possession of the property and updates its ownership details on the 7/12 land abstracts.

PMC data reveals that in 2023, over 200 properties were sealed, and these are slated to be auctioned in stages, with an expected revenue of approximately Rs 245 crore. The total outstanding property taxes amount to Rs 8,000 crore, while PMC’s property tax department typically earns between Rs 1,800 crore and Rs 2,000 crore annually.

Ajit Deshmukh, Head of PMC’s property tax department, emphasized that the properties earmarked for auction are commercial, and repeated attempts were made to collect the overdue taxes. However, with the dues remaining unpaid, the decision to proceed with the auction was made.

Civic officials are currently assessing the valuation of the properties earmarked for auction, with an initial estimate suggesting a collection of around Rs 60 crore in the first phase. PMC is conducting the auction in accordance with the Maharashtra Regional and Town Planning Act, empowering local self-governing bodies to initiate such auctions for tax recovery. The outstanding defaults range from four to ten years.

Under PMC’s jurisdiction, approximately 12 lakh properties, including mobile towers and prominent defaulters such as industries, commercial complexes, IT parks, and hospitals, are subject to tax payment. Property tax encompasses basic house/building tax along with service taxes like street tax and conservancy/scavenging tax, collected either half-yearly or annually. Citizens who settle their property tax before May 31 are eligible for a 10% discount.

PMC officials have implemented various measures, including playing music bands outside defaulting properties, and have introduced an amnesty scheme to facilitate tax recovery. The auction is a strategic move to ensure compliance and address long-standing tax arrears within the municipality.