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The Pune Municipal Corporation (PMC) has successfully recovered over INR 34 crore from property tax defaulters in the past fortnight by using music bands. These bands play loud music outside properties of defaulters, mostly commercial establishments, to shame them into settling their dues. The defaulters have not paid taxes for periods ranging from one year to ten years. Despite sending recovery notices, many owners had failed to respond, prompting this unconventional approach. PMC continues its efforts to meet a property tax revenue target of INR 2,600 crore for the 2024-25 fiscal year.
Pune Municipal Corporation (PMC) has recovered over INR 34 crore from property tax defaulters in the past fortnight by using an unconventional approach-employing music bands. These bands play loud music outside the defaulters' properties, creating a public spectacle to shame them into settling their long-overdue tax payments. A significant number of these defaulters are owners of commercial properties, with tax dues spanning from one year to as much as ten years. Advertisement
This bold initiative comes after PMC sent recovery notices to property owners who failed to pay their taxes despite multiple reminders. Madhav Jagtap, head of PMC's property tax department, explained that the civic body resorted to this approach after many owners ignored the notices. "PMC specifically targeted these defaulters in this special drive after they failed to respond to the recovery notices," Jagtap stated. This move aims to pressure the defaulters into clearing their dues.
PMC has set an ambitious revenue target of INR 2,600 crore from property taxes for the 2024-25 financial year. As of the second quarter, the civic body had already collected INR 1,600 crore. Pune has about 13.5 lakh properties liable for tax payments, and PMC's recovery efforts are crucial to meeting its target. The innovative strategy of using music bands to shame defaulters is one of several methods the civic body is employing to achieve this.
In the past, PMC has faced significant challenges in recovering taxes from defaulters. While previous efforts involved sending notices and offering amnesty schemes, many property owners still failed to comply. The use of music bands has emerged as a more direct and attention-grabbing tactic. Vivek Velankar, a prominent member of Sajag Nagrik Manch, has called for PMC to focus on larger defaulters. He suggested that music bands should be directed at properties with substantial overdue amounts, stressing the importance of taking stricter actions against habitual defaulters. Velankar also recommended that such defaulters should not benefit from amnesty schemes, as they had proven to be habitual offenders.
PMC officials highlighted that tax recovery is approached in a step-by-step process. Initially, they send notices to defaulters and, if payment is not received, may temporarily seal the property. If the situation does not improve, the next step involves taking possession of the property and auctioning it off through an online bidding process. The online auctions have been a reliable method for PMC to recover unpaid taxes from defaulters who refuse to comply with earlier actions. In cases where tax payments remain unpaid, officials said that property owners are given ample time before the property is put up for auction.
PMC also spends INR 15 lakh to INR 20 lakh annually to bring in music bands for this initiative, which has now gained attention for its unconventional and creative approach to tackling tax evasion. While this method is gaining traction, PMC continues to explore other options to ensure that the property tax dues are recovered efficiently.
PMC's decision to employ music bands in recovering property tax dues has proven effective, helping the civic body collect over INR 34 crore in just two weeks. The method has drawn attention for its ability to publicly shame defaulters into paying their taxes. Despite challenges, such as habitual non-compliance from some property owners, PMC is committed to meeting its revenue target for the 2024-25 financial year. The success of this initiative highlights the need for strong measures to address tax evasion in Pune, and it also stresses the importance of PMC exploring diverse strategies to recover unpaid taxes and ensure timely payments.
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