Pay tax on time or face property attachment and auction: MCD

Press Trust of India New Delhi | Updated on March 27, 2011

Desperate to increase collection of house tax, the main source of its revenue, the Municipal Corporation of Delhi has warned defaulters that they may face prosecution and property attachment if they do not clear dues by this month-end.

Issuing a public notice, the civic agency has pointed out that the last date for paying property tax of earlier years and the current year is March 31 and clearance of dues by that date will ensure 100 per cent waiver of interest and penalty on pending tax.

The Municipal Corporation has been running two schemes for settlement of ex-parte assessments under old system of assessment (rateable value) as well as the new system (unit area method) – both of which will expire by March-end.

The notice said that in case of failure to clear property tax arrears and current dues by March 31, defaulters will face interest at 1 per cent a month, penalty of 30 per cent of tax unpaid, rigorous imprisonment and fine of not less than 50 per cent of the tax evaded and attachment of movable and immovable properties and their auction.

The cash-strapped civic body is keen to collect more property tax, which is its main source of revenue. The collection has been below the initial target this financial year, prompting the civic body to revise the target.

The old RV system continued till March 31, 2004. The unit area method was introduced on April 1, 2004.

There are about one lakh cases pending under the old system.

In the RV system, the capital value of the property was used to be taken into account while in the unit area method, value is assigned to colonies rather than individual properties.

Meanwhile, the Delhi High Court has rejected the plea of a group of private educational institutes seeking a direction to DDA to allot them nazul land at a cheaper rate rather than auctioning at market price for establishing higher/technical education institutes and schools.

Dismissing a batch of petitions, a bench of Mr Justice Sanjay Kishan Kaul and Mr Justice S.K. Mishra said, “The clear mode of disposal of nazul land for hospitals, dispensaries, higher or technical education institutes and schools, would continue to be by way of auction” while referring to the amended rules in 2006 with regard to the DDA Act.

“We are unable to accept the plea that there is any unguided power conferred under the said rules which is capable of being misused. It is, in fact, the past misuses which gave rise to the amendments with a view to minimise arbitrary exercise of excessive discretion,” it said.

The bench accepted DDA's argument that the agency was entitled to either auction the land or allot it at pre-determined rates for establishment of higher/technical education institutes, schools or hospitals, but no proper safeguard or guidelines have been put in force as to whom land is to be allotted and by which mode.

The court was hearing the group of petitions dealing with higher/technical education institutes and schools that the right to education should be treated on a different pedestal, and thus the government is duty-bound to provide cheaper land to private institutions facilitating this activity.

Published on March 27, 2011

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