The Chandigarh Municipal Corporation (MC) is set to initiate attachment proceedings against the top 2,000 property tax defaulters, including both commercial and residential entities. Many have failed to settle their dues within the stipulated timeframe. Section 138 of the Municipal Act empowers the MC to recover overdue taxes and associated recovery costs by attaching and selling the immovable properties of defaulters. A considerable sum, approximately Rs 150 crore, is pending in property tax dues, with Rs 8 crore attributed to residential properties. Despite offering incentives, the MC now faces no alternative but to resort to attachment proceedings due to persistent non-compliance.
After the issuance of numerous demand notices, the MC is now poised to embark on attachment proceedings targeting the foremost 2,000 property tax defaulters, encompassing both commercial and residential properties. A significant proportion of these delinquent taxpayers have, regrettably, not met the obligation to settle their overdue payments within the designated timeframe. Consequently, the MC is now exercising the substantial authority vested in it by Section 138 of the Municipal Act.
This provision empowers the civic body to initiate attachment proceedings, a measure designed to recover any lingering tax liabilities, along with the attendant costs of recovery, by means of attaching and ultimately selling the immovable properties owned by the defaulters. To underscore the magnitude of the issue at hand, a responsible official articulated that the majority of these unpaid dues have accrued over an extended period, and the MC has been taking a series of rigorous steps to retrieve these outstanding funds.
Presently, there is a substantial sum of approximately Rs 150 crore pending in property tax dues, with an estimated Rs 8 crore arising solely from residential properties. In the preceding fiscal year, the MC executed attachment orders for a total of 339 properties. Furthermore, the MC had resorted to the measure of sealing 17 properties, with 13 of them subsequently being de-sealed following the timely deposit of the overdue payments.
At a prior juncture, the civic body had implemented an incentive scheme featuring substantial discounts of up to 20 percent for those property owners who settled their tax payments during the period spanning from April 1 to May 31. However, following the expiration of this advantageous rebate period, defaulters found themselves subject to a penalty of 25 percent, in addition to a compounded 12 percent annual interest on the outstanding tax balance. This interest was calculated commencing from the date of issuance of the tax bill and extending to the date of the actual payment.
Drawing attention to the diligent efforts aimed at encouraging compliance, the official expounded that on the expiration of the rebate period, the MC diligently dispatched demand notices, extending multiple opportunities to property owners for the settlement of their dues, spanning the current fiscal year and the preceding financial years. However, in light of the persistent non-compliance with the directives issued, the MC has now found itself with no alternative but to embark on attachment proceedings.
In summation, the MC is taking a resolute stance to address the longstanding issue of property tax defaults by initiating attachment proceedings. This endeavour underscores the gravity of the situation, with substantial sums in arrears, and seeks to recover these overdue payments, along with the associated costs, through the attachment and sale of the defaulters' immovable assets.
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