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The Telangana High Court has directed the state government to transfer INR 40 crore in property tax transfer (TPT) charges to the Secunderabad Cantonment Board (SCB), raising the total disbursed amount to INR 90 crore of the estimated INR 100 crore owed. This ruling, following a writ petition by J Ramakrishna, addresses delays that stalled development projects and basic services. SCB CEO Madhukar Naik highlighted financial challenges since 2017 due to unpaid dues and abolished OCTROI taxes. While the order provides temporary relief, the SCB urges a streamlined payment system for long-term financial stability and uninterrupted services.
The Telangana High Court has directed the state government to release INR 40 crore in property tax transfer (TPT) charges to the Secunderabad Cantonment Board (SCB). This directive follows a writ petition filed by J Ramakrishna, a nominated member of the board, addressing prolonged delays in TPT payments that have hindered the cantonment's operations.
With this ruling, the total amount transferred to the SCB reaches nearly INR 90 crore out of an estimated INR 100 crore due. Earlier this year, INR 48 crore had been disbursed in March. Ramakrishna emphasized that the ruling is crucial for maintaining essential services in the cantonment area. He noted that the delay in TPT transfers has severely impacted efforts to carry out development projects and provide basic amenities to residents.
Before the formation of Telangana, the Registration and Stamps Department directly transferred TPT charges to the SCB. However, after the state's creation, the process was modified, routing payments through the state government. This change has introduced significant delays.Ramakrishna explained that the new system has created bureaucratic hurdles. He noted that for years, the authorities have faced delayed payments, resulting in stalled infrastructure projects and maintenance work within the cantonment.
The High Court's intervention comes as a lifeline for the SCB, which has been grappling with financial constraints. Ramakrishna stated that with this INR 40 crore, the cantonment can now clear pending bills and resume multiple stalled projects. However, he emphasized that the board is still awaiting the remaining dues and called for a more efficient transfer mechanism from the state government.
SCB CEO Madhukar Naik confirmed the court's directive to release the funds, shedding light on the financial challenges faced by the board. Naik explained that a portion of the registration amount was meant to be allocated to the cantonment. However, since 2017, these funds have been redirected to the state's central treasury, and from 2020 onwards, the cantonment's dues have remained unpaid. Combined with the abolishment of OCTROI taxes, this situation has severely impacted the cantonment's finances and stalled development work.
The court's order offers temporary relief, but the SCB continues to await a resolution to the remaining dues, underscoring the need for a streamlined and consistent payment mechanism.