Mohali MC slaps notices on 14 showrooms over property tax dues
Among the other government defaulters, PWD has to pay around ₹3 lakh, the excise and taxation department has to pay ₹2 lakh, Commando Complex has to pay around ₹1 crore, crime branch has to pay over ₹2.5 lakh, and the labour department has a pending tax amount of ₹3 lakh
The local municipal corporation (MC) on Wednesday sent sealing notices to 14 long-time defaulters of commercial property tax in Mohali.
Notably, the property tax, in addition to the water supply collection charges, is one of the key revenue generators for the MC.
According to officials, the MC has identified 14 showrooms in Phases 1, 2, 3B2 and 6, which have not paid property tax for many years. These also include jewellery showrooms in prominent markets of the city.
Before shortlisting them, the civic body had issued over 200 notices to the defaulters around two months back. Later, the MC had once again sent notices to those defaulters in December who did not pay even after receiving the first notice.
“These 200 commercial property owners did not pay tax for a long time and thus were issued notices. Eventually, we identified 14 gross defaulters who did not bother to pay even after repeated warnings and long-time pendency. We have now sent them sealing notices and will soon take action following the legal process. Property tax defaulters in the commercial segment owe the MC crores,” a senior MC officer said.
Besides commercial property tax defaulters, the government departments also owe the civic body over ₹6 crore in long-pending property tax dues.
Moreover, the MC had previously sent notices to government buildings, including GMADA, which is the biggest defaulter among the government offices. It has to pay tax amounting to around ₹5 crore to the MC.
Among the other government defaulters, PWD has to pay around ₹3 lakh, the excise and taxation department has to pay ₹2 lakh, commando complex has to pay around ₹1 crore, crime branch has to pay over ₹2.5 lakh, and the labour department has a pending tax amount of ₹3 lakh.
An officer added that the MC was pursuing the defaulting amount issue with government agencies.
So far, the MC has collected over ₹37 crores property tax for the financial year 2024-25 against the target of ₹41 crore.
In the last financial year, the MC had collected ₹36 crore against the target of ₹35 crore.
There are around 5,800 commercial properties, 38,000 residential properties and 2,000 industrial properties in the city under the civic body.
Field survey to verify the amount paid
The MC has already started a door-to-door survey in Sector 60 to verify the properties randomly to ascertain that the taxpayers paid the correct amount.
“Property owners are paying property tax on a self assessment basis. Now, the MC’s property tax branch has started verifying whether the correct amount was paid or not as some commercial tax defaulters, including hospitals, hotels and petrol pumps, are suspected of paying less property tax. MC teams are conducting field surveys,” an officer privy to the development said.
The MC had already granted a 10% rebate to taxpayers till September 2024. Those who failed to settle their dues will now be subject to penalties and interest on principal amount.
Defaulters can pay the property tax with 10% penalty till March 31, after which they will have to pay 20% penalty on the total amount, along with an additional 18% interest on the outstanding sum, to the civic body.
