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The Pune Municipal Corporation (PMC) has initiated an auction of 46 properties to recover INR 11 crore in unpaid property taxes. Despite announcing a similar auction last year for 50 properties, only two were sold as most defaulters settled their dues at the last moment. The PMC has already seized properties where no legal disputes exist and has begun the auctioning process. PMC follows a structured approach, sealing properties and imposing a penalty of 2% per month on unpaid taxes. Successful bidders must pay an initial 20% of the bid amount within two days and the remainder within 15 days, though owners can reclaim their properties if dues and auction expenses are cleared within the same period.
The Pune Municipal Corporation (PMC) has announced an auction of 46 properties to recover INR 11 crore from property tax defaulters. Previously, the civic body had planned to auction 50 properties; however, only two were sold as most defaulters cleared their dues at the last minute. Advertisement
Currently, 38 property owners are at risk of legal action for unpaid taxes. Many of these defaulters have sought legal recourse, resulting in payment delays and an increase in the number of outstanding cases.
PMC Deputy Commissioner Madhav Jagtap mentioned that the civic body had already seized properties belonging to defaulters without legal disputes. He explained that notices had been issued to these property owners for payment, but as they failed to comply, PMC initiated the auction process to recover the dues.
The municipal body follows a stringent process for handling tax arrears. Property owners who fail to clear their dues despite repeated warnings face an auction of their assets. Additionally, a penalty of 2% per month is imposed on unpaid property tax. Notices are issued to defaulters once the financial year concludes.
In mid-2023, PMC sealed properties in areas such as Dhayari, Vadgaon Budruk, Vadgaon Khurd, Ambegaon Khurd, Ambegaon Budruk, and Narhe for unauthorised construction and non-payment of taxes. Some of these properties had violations including illegal expansions in restaurants and hotels, unauthorised godowns, industrial properties, and sports units operating without PMC's approval while generating substantial revenue.
The auction process mandates that bid winners pay 20% of the amount within two days and the remaining sum within a fortnight. However, if the property owner settles the outstanding tax along with auction-related expenses within 15 days, the bid winner will receive a refund of the deposited amount, as per officials from the property tax department overseeing the auction.
PMC's initiative to auction properties highlights the civic body's stringent approach to recovering unpaid taxes. By enforcing penalties and sealing unauthorised structures, PMC aims to ensure tax compliance while discouraging property misuse. This proactive measure underscores PMC's commitment to financial discipline and urban governance.
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