Times of India: Nagpur:
Monday, 07 September 2015.
Violating the norms, Nagpur Municipal Corporation
(NMC) is not recovering two times more property tax from many unauthorized
constructions, incurring a huge revenue loss. One of the best examples of this
trend is Empress City, which is already in controversy for various types of
violations, but escaping triple property taxation for the last four years.
With introduction of the Maharashtra Municipal
Corporations (MMC) Act in December 2012, it is mandatory for all ten zones of
NMC to recover two times more property tax from buildings comprising
unauthorized constructions. The move was to ensure increase in revenue and also
act against violators in monetary terms. For example, if property tax of a
structure was 1,000 per annum, NMC was supposed to levy 3,000 per annum in case
there was any unauthorized construction.
The then municipal commissioner Sanjeev Jaiswal
and the then additional deputy municipal commissioner Ravindra Kumbhare had
issued a circular and held meetings with assistant commissioners of all ten
zones and officials of property tax department to draw up a list of
unauthorized constructions. NMC had served notices to these, and also moved to
identify more such structures so it could start levying two times more property
tax from 2012-13.
NMC data says over 2,000 properties were issued
notices under section 53 and 54 of the Maharashtra Regional and Town Planning
(MRTP) Act since 2012-13. The number of unauthorized constructions unidentified
by NMC but not issued notices is much more. Interestingly, NMC does not take
any strict action like demolition of unauthorized constructions unless and
until there is a major complaint or there are directives from higher officials.
Many unauthorized constructions are untouched despite having been served notices
many years ago. As per norms, NMC has to demolish the unauthorized construction
a month after issuing notice.
NMC also admits that zone offices have recovered
triple property tax on less than 30% of the total unauthorized constructions to
which notices were issued under the MRTP Act. However, tax assessor Shashikant
Hastak did not respond to TOI's calls.
Empress City is one among the structures that have
escaped recovery of triple property tax. Few parts of Empress Mall, one of the
five components in the Empress City, was brought under the property tax ambit
in 2009-10. Assessment of 170 of total 340 units in Empress City have been
brought under property tax ambit till last fiscal. Assessment of remaining
units is going on, which is another story of revenue loss. Total property tax
is calculated at Rs2.50 crore per annum at present.
In July 2013, the NMC Dhantoli zone had served
notice to KSL and Industries Limited, developer of Empress City, for
unauthorized construction. Immediately, Kumbhare had directed zone officials to
ensure recovery of two times more property tax from Empress City.
According to documents released under the RTI Act,
NMC Dhantoli Zone office had sent a letter to KSL on April 15, 2014, informing
that Empress City became liable for triple property tax and directed it to pay
tax of Rs9.60 crore for two years within seven days.
Assistant commissioner from NMC Dhantoli Zone
Subhashchandra Jaidev told TOI property tax of 2.50 crore per annum is levied
on Empress City as on date. "I joined in January 2014 and since then have
ensured triple property tax on unauthorized constructions. Tax engineers are
yet to complete assessment of all units in Empress City. Triple property tax
will be levied after completing assessment of total units," he said.
As per norms, NMC was to levy two times more
property tax on whatever amount was being levied every year. A separate letter
along with annual demand note was supposed to be sent, followed by recovery of
triple property tax. Thus, the zone office has continued to give indirect
benefit to Empress City.
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