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Haryana

MCG owes state ₹350 Cr as property tax dues: ULB

February 23, 2020 06:38 AM

COURTESY HT FEB 23MCG owes state ₹350 Cr as property tax dues: ULB
MAIN SOURCE OF INCOME: So far, the MCG has collected ₹170 crore in property tax in 2019-20, as per its official website mcg.gov.in

Kartik Kumar

kartik.kumar@htlive.com

Gurugram : Nearly 20% of pending dues across 10 municipal corporations in Haryana are owed by the Municipal Corporation of Gurugram (MCG) in the form of property tax, officials said on Saturday.

As per officials, a report on pending dues of all municipal corporations in the state by the directorate of Urban Local Bodies (ULB) revealed that there are dues of around ₹1,700 crore, of which nearly ₹350 crore in the form of property tax dues, is owed by the MCG.

Property tax is the main source of income for the MCG. Each fiscal, the MCG sets aside ₹250 crore in property tax collection. Each fiscal, roughly 15-20% of its main earnings are recovered through property tax.

So far, the MCG has collected ₹170 crore in property tax in 2019-20, as per its official website mcg.gov.in.

As per MCG officials, last week they received directions from the ULB to identify defaulters of property tax and take requisite action against them.

In December last year, the MCG had identified 253 residential properties whose owners each owed the MCG over ₹20 lakh. On further update, the MCG identified that there were 197 such properties.

“Following the directions of the ULB, we have already compiled the action taken report against the 197 owners. Besides, we have also started identifying property owners who owe the MCG above ₹10 lakh. The report on this will be compiled by Tuesday,” Dinesh Kumar, zonal taxation officer (ZTO), MCG, said.

As per the action report against the 197 defaulters, a copy of which is with Hindustan Times, 55 property tax owners have paid the dues, 33 have not paid so far, 32 buildings of such owners have been sealed by the MCG while the collection of dues from 77 building owners is under process.

As per Kumar, there are 3.90 lakh properties under the MCG’s jurisdiction, a figure he says was ascertained during a state-level survey in 2014-15. He said that the total number of properties will now be more than 5 lakh properties, for which a survey is underway.

“Every five years, the state government initiates a survey across all districts in Haryana to update its property records. The 2019-2020 survey is underway and its reports will be disclosed within the next six months to help us gauge the total number of properties that have been added in the last five years,” Kumar said.

In March 2017, the MCG had identified that there were around 50,000 vacant plots, of which the MCG did not have records of over 39,000 owners at the time.

Officials disclosed that there are still 30,000 such properties whose owners are yet to be traced.

MCG officials said that besides the two sets of owners who owe the MCG over ₹20 lakh and ₹10 lakh each, a large share of the ₹350 crore dues are owed by property owners who have not paid the civic body dues ever since its inception in 2008. These pertain mostly to village land, officials said.

“When the MCG came into existence, all Panchayati land got transferred to the MCG. However, several villages opposed this and declined to recognise the MCG. There are still more than 50 villages that continue to oppose this to date. Also, many building owners have been living in the city since the 1970s who refuse to pay the MCG when we came into existence. Over time, with sealing and rebate schemes, we got them to pay their dues. The figure has come down from ₹1,000 crore to ₹350 crore now,” the official said.

In March 2018, during an MCG house meeting, the house gave its consent to providing an exemption on property tax payment to all villages. The proposal is still pending with the MCG.

 

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