Staring at an acute financial crisis, coupled by the challenge of keeping itself qualified for government grants, the Mira Bhayandar Municipal Corporation (MBMC) has finally decided to act tough against property tax defaulters in the twin-city.
Apart from intensifying the recovery drive with a special focus on chronic defaulters, the MBMC’s tax department has now decided to conduct physical auctions of attached properties.
The step was taken after the tax department failed to get a single bid for thirty out of 161 properties which were put for auction not once but twice on the e-auction platform linked to MBMC’s official website last year.
After following the due process of law including assessments by an approved government valuer, the MBMC prepared a list of 161 immovable assets owned by major tax defaulters who collectively owe a whopping ₹7 crore.
The list of assets along with auction details will be floated soon and after getting a buyer, the tax department will recover its own dues and after deductions of any other outstanding loans, unpaid bills or other taxes will hand over the remaining amount to the property owner.
MBMC Has Plan B Ready for Properties With No Takers
“If we fail to get buyers this time, we have already got a plan B in place. The properties will be acquired and used either for our offices or staff quarters as per their location and the corresponding need to accommodate people-friendly services,” said deputy civic chief- Sanjay Shinde.
As per information sourced from the tax department, the target was set at ₹190 crore for the financial year 2021-22 out of which the MBMC had managed to mop up just ₹161 crore. This year the MBMC is mandated to recover at least ₹200 crore to keep itself qualified for grants under the 15th finance commission.
However, so far, a little above ₹123 crore, has been recovered, saddling the tax department with a daunting task of mopping up at least ₹75 crore of the outstanding amount within three months as the current financial year ends on March 31, 2023.
The assessed number of properties in the twin city is currently pegged at around 3,68,501, including 63,498 commercial and 3,05,003 residential units.
