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Punjab: Owners of illegally run PGs in Mohali to be sent notice for not paying tax

The president of Mohali Consumer Protection Forum, P S Virdi, who fought against the illegal PG menace, said that more than 3,000 illegal PGs were being run in various parts of the city and the owners were not only violating the guidelines but also causing a financial loss to the state exchequer.

Written by Jagdeep Singh Deep | Mohali |
February 27, 2021 9:56:50 am
Owners of illegally run PGs in Mohali to be sent notice for not paying taxTill March last year only, 50 PGs were registered with GMADA. After the lockdown, the process of registration got slow as many people had vacated their rented accommodations. (Representational Image)

After the Greater Mohali Area Development Authority (GMADA), the Municipal Corporation will issue notices to the owners of the paying guest houses (PG) who run the accommodations illegally and also do not pay property tax. The last date for paying the tax for the authorised PGs is March 31.

A Municipal Corporation official told The Indian Express that they had started the process of identifying the residential properties being used as commercial ones because of the PGs. Once the identification process is complete, the Municipal Corporation will issue notices for property tax payment.

“We are in touch with GMADA. We have a list of registered PGs but the number of illegal PGs is high. These PGs are being run in villages like Shahi Majra, Madanpura, Kumbra, Sohana and Matour. The owners of these PGs are paying the tax showing that they were using the building on their own but actually, they are using them as commercial buildings,” the officer added.

Till March last year only, 50 PGs were registered with GMADA. After the lockdown, the process of registration got slow as many people had vacated their rented accommodations.

The president of Mohali Consumer Protection Forum, P S Virdi, who fought against the illegal PG menace, said that more than 3,000 illegal PGs were being run in various parts of the city and the owners were not only violating the guidelines but also causing a financial loss to the state exchequer.

“These PGs also create law and order issues. We have been fighting against this menace for long,” Virdi added.

The owner of the property who uses it for commercial purposes has to pay 7 per cent of the total income per annum of the property as property tax. The MC officials said that there were PGs which have an income of Rs 50 to 60 lakh per annum and the owners do not pay the property tax.

The MC had recently verified the self-assessment of property returns of 180 property owners and found that six of them had hidden the information that they had given the properties on rent, following which the MC had issued notices to them.

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