Pune’s Property Tax Drive: PMC Seals Choice Health Club And Arole Construction, Aims For Rs 57 Crore Recovery

Pune, 1st October 2023: The Taxation and Tax Collection Department of the Pune Municipal Corporation (PMC) has intensified efforts to directly seal properties belonging to property tax defaulters. The PMC has taken this action against two prominent properties, Choice Health Club in Kothrud and Arole Construction Pvt Ltd in Mangalwar Peth, both of which owe the PMC Rs. 4 Crores in arrears.

Despite the PMC’s various schemes and tax concessions to encourage tax payments, many citizens in Pune have displayed apathy towards paying their taxes, often citing different reasons. In response, the PMC initiated a campaign to send notices to those in arrears for tax recovery. However, as these notices received no response, the PMC has resorted to sealing properties of tax defaulters. The guidance of the Deputy Commissioner and Head of the Taxation and Tax Collection Department, Ajit Deshmukh, has been instrumental in these actions.

The PMC intends to sell the seized properties, which is expected to yield substantial revenue for the municipality. In the first phase, 202 properties are scheduled to be auctioned, with an estimated collection of 57 crore rupees in the municipal treasury. Following this initial auction phase, a second phase of auctions is also planned.

Furthermore, in the current year, the PMC aims to generate 2 thousand 400 crores in property tax revenue, with 1,442 crores already collected. Alongside collecting taxes from property owners, the municipal corporation’s property tax department is emphasizing levying new taxes.

To achieve the set tax collection goal, the PMC has deployed additional staff and is taking stringent measures against defaulters. Peth Inspectors in the Property Tax Department have been directed to seal outstanding properties, with a target of sealing at least 30 commercial properties per month. Additionally, the staff is available to assist Divisional Inspectors and Peth Inspectors in this endeavour, aiming to seal at least 50 revenues collectively.

PMC had earlier implemented a lottery scheme for citizens who paid their properties taxes on time in the financial year 2023-24. Deputy Chief Minister Ajit Pawar felicitated the winners of this scheme, reinforcing the PMC’s commitment to encouraging timely tax payments. Currently, a 40 per cent tax concession is being offered, and it has been clarified that no schemes akin to the Abhay Yojana will be implemented by the municipality.

Ajit Deshmukh, Head of Taxation and Tax Collection Department, Municipal Corporation, stated, “Tax defaulters were given notices to pay their taxes, but there was no response, and arrears remained unpaid. The properties of such defaulters are being seized, and today, properties with outstanding property of four crore rupees in Kothrud and Mangalwar Peth were sealed. The sealing of properties in the city will continue.”