In a move to generate more revenue, the North Delhi Municipal Corporation (NDMC) is set to auction properties whose owners owe a large amount in property tax to the civic body. The move comes as the civic bodies struggle to keep up with their expenses while dealing with a financial crunch.
In notices issued to resident welfare associations, the North Corporation has urged property owners to pay the due tax before the end of the month. “Tax defaulters will be heavily penalised and on continuing to default, their properties will be put to auction,” the notice states.
The first such auction will take place in Kirti Nagar, when the civic body puts on sale a property measuring 1,500 square metres, which owes a tax of Rs 4 crore to the civic body. The properties have been valued as per their size and circle rate, said North Corporation officials.
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North Delhi mayor Ravinder Gupta said that the time has come for the corporation to take some harsh decisions. “The government isn’t supporting us and we are struggling to keep up our welfare programmes and pensions. Given this background, we have to do all we can to recover the taxes and keep the civic body functioning,” Gupta said.
The mayor added that only 20 per cent of the property holders under the civic body’s jurisdiction are paying their taxes.
An e-auction portal has been set up which, officials claim, will function “like a stock exchange” and bids will be invited electronically for the listed properties. However, the identity of the bidders will not be made public.
The civic body is also planning to “make an example” of auctioned cases to prove that it means business and intends to recover the due taxes.