Pune: In a bid to recover pending property tax dues, the Pune Municipal Corporation (PMC) has announced the initiation of seizure and auction proceedings against defaulting properties.
To meet its annual revenue target, PMC has set a daily collection goal of ₹10 crore. However, a state government-imposed stay on tax recovery from newly merged villages is expected to impact the municipal body's revenue.
A high-level meeting of senior officials and inspectors from PMC’s Tax Assessment and Collection Department was convened on Thursday (January 30), during which Deputy Commissioner Madhav Jagtap issued firm directives regarding tax recovery.
As per the outlined strategy, each officer has been assigned a target of initiating recovery actions on at least ten defaulting properties per day. This will include the seizure and auction of properties to ensure consistent revenue flow.
For the financial year 2024-25, PMC had projected property tax revenue of ₹2,800 crore, factoring in the inclusion of 34 newly merged villages. However, with just two months remaining in the fiscal year, only ₹2,000 crore has been collected so far.
To bridge the gap, PMC has intensified its recovery operations, canceling staff leaves and directing an aggressive push to collect ₹600 crore over the next 60 days.
State Government's Stay Order Poses a Challenge
A significant hurdle in tax collection efforts is the state government’s stay on the recovery of outstanding dues from properties located in the merged villages.
While individual property owners in these areas continue to make payments, unpaid dues from commercial properties remain a major concern. This legal restriction is likely to hinder PMC’s ability to meet its revenue projections for the year.
Auction of Sinhgad College Properties
One of the most prominent defaulters is Sinhgad Educational Institute, which has an outstanding property tax liability of ₹18 crore. Despite previous actions, including the sealing of its office two months ago, the institution has not cleared its dues.
Consequently, PMC has decided to auction the institute’s properties to recover the outstanding amount, according to Deputy Commissioner Jagtap.