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Pune: PMC to disconnect water supply for property tax defaulters

#Taxation & Finance News#India#Maharashtra#Pune
Last Updated : 8th Jan, 2025
Synopsis

The Pune Municipal Corporation (PMC) has announced a new initiative to disconnect water supply from properties with unpaid property tax dues. The action will target both residential and commercial properties, with a particular focus on residential ones. The drive, which began on January 2, 2025, aims to recover significant revenue, with a target of INR 2,600 crore for the current fiscal year. To supplement their efforts, the PMC has also launched a music band initiative that has already raised INR 60 crore in a month. Legal advice is being sought to ensure that the measures taken comply with the law.

Strict action is being taken by the Pune Municipal Corporation (PMC) against those who fail to pay property taxes. The municipal organization will begin a campaign to cut off water service to properties that have not paid their bills on January 2, 2025. The head of PMC's property tax division, Madhav Jagtap, stated that five flying squads had been established to find and deal with defaulters. Both residential and commercial property inspections will fall under the purview of these squads. The teams will consist of laborers, plumbers, and ward office representatives.


The primary focus of this drive will be residential properties. Since many residents own just one property, which they live in, the PMC is avoiding actions like property attachments, which could leave individuals without shelter. Instead, disconnection of water supplies is being considered as an alternative action, as per a senior official from the civic body. Legal advice is being sought to ensure the actions are in compliance with the Maharashtra Regional and Town Planning (MRTP) Act and other relevant laws.

The property tax department contributes a significant amount to PMC's annual revenue, generating between INR 2,000 crore and INR 2,200 crore. For the current fiscal year, the civic body has set a target of INR 2,600 crore. In an effort to recover dues, the PMC recently launched a music band drive that targets tax defaulters' properties. This initiative has already managed to collect around INR 60 crore within a month.

In past years, this approach has proven successful, with the PMC using music bands to encourage tax recovery from defaulters. The campaign raised INR 60 crore in just a month, demonstrating the innovative ways the civic body is tackling tax evasion. Additionally, out of the 14.5 lakh properties under PMC's tax jurisdiction, 8.5 lakh property owners have already cleared their outstanding dues.

The PMC's latest efforts to collect property taxes through water supply disconnections and other measures aim to improve revenue collection, which plays a crucial role in funding city infrastructure and services. While the initiative has faced some criticism for potentially affecting residential properties, the civic body is focusing on alternative actions like water disconnections instead of property seizures. With a target of INR 2,600 crore for this fiscal year, the PMC is exploring creative methods, including the music band drive, to recover the owed taxes. Historically, the PMC's property tax collections have been substantial, and many property owners have already cleared their dues, supporting the drive's continued success.

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