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Kolkata Municipal Corporation seals shops in central city markets during drive against property tax defaulters

#Taxation & Finance News#India#West Bengal#Kolkata
Kolkata News Desk | Last Updated : 12th Mar, 2026
Synopsis

The Kolkata Municipal Corporation (KMC) has sealed several commercial establishments in central Kolkata as part of an enforcement drive to recover unpaid property taxes from defaulting property owners. In one such operation, civic officials sealed 15 shops at Shreeram Arcade near SN Banerjee Road after issuing distress warrants to traders who had failed to clear outstanding tax dues. Municipal officials indicated that property tax arrears of around INR 5.5 crore remain pending from the shopping complex alone. Some traders reopened their establishments after making partial payments during the drive, while the civic body has set a deadline of 31 March for full settlement of dues. The enforcement action forms part of a broader municipal effort to improve property tax compliance among commercial establishments in key trading areas of central Kolkata.

The Kolkata Municipal Corporation (KMC) has initiated enforcement action against property tax defaulters by sealing multiple commercial establishments in central Kolkata markets, including shops within the Shreeram Arcade complex near SN Banerjee Road. The action was carried out earlier this week by officials from the civic body's assessment department as part of a drive to recover pending municipal tax dues from commercial property owners.


During the operation, KMC officials sealed 15 shops in the shopping arcade after issuing distress warrant notices to traders who had failed to clear outstanding property tax payments. The enforcement action was undertaken after repeated reminders were reportedly issued to defaulters who had not responded to earlier notices.

According to civic officials, approximately INR 5.5 crore in property tax dues remain unpaid by establishments operating within the shopping complex. The sealing of shops was intended to compel property owners and occupiers to clear pending payments and regularise their tax obligations to the municipal authority.

The sudden enforcement action initially disrupted business operations at the arcade, though several traders subsequently made partial payments to avoid prolonged closure. Municipal officials stated that some shops were reopened later in the day after owners deposited part of their outstanding dues with the civic body. During the drive, the assessment department reportedly collected about INR 20 lakh from traders who cleared portions of their tax liabilities following the sealing of their establishments.

Officials indicated that traders who received distress warrants have been directed to settle their outstanding dues by 31 March. If the amounts remain unpaid after the deadline, the civic authority may take further steps including resealing of the premises and possible auction proceedings to recover the outstanding tax liabilities.

The enforcement drive was not limited to Shreeram Arcade. KMC officials stated that similar operations were conducted in other commercial areas in central Kolkata, including parts of Lenin Sarani and areas around New Market, where the civic body is also monitoring property tax compliance among traders and property owners.

Municipal officials noted that property tax constitutes one of the primary sources of revenue for the city administration and is used to fund essential civic services such as road maintenance, sanitation, drainage systems and urban infrastructure. Failure to pay property tax affects the municipal corporation's ability to finance these services and maintain city infrastructure.

Officials from the assessment department indicated that the corporation plans to continue enforcement measures against commercial property tax defaulters in other markets and shopping complexes across the city. The civic body has also warned that establishments that fail to regularise their tax payments within the stipulated timeframe could face further legal and administrative action as part of the ongoing recovery campaign.

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