‘Centre,state govt owe BMC Rs 400 crore

The centre and state government owe the BMC close to Rs 400 crore in unpaid taxes,according to figures given by the civic body. This includes Rs 205 crore as water tax and Rs 180 crore as property tax. The statistics were given by BMC lawyer Geeta Joglekar during the hearing of a PIL in the Bombay High Court on Thursday.

However,referring to Section 144 of the BMC Act,Joglekar clarified,“The various departments of the Centre and state government are exempted from paying corporation taxes,but have to pay an annual sum to the government in lieu of the taxes.”

The petition asked the court to order the Centre and state government to pay their arrears. It also challenges the validity of Section 279 of the BMC Act,which holds that the Commissioner can cut off the connection to any premises to which a private water supply is furnished if the taxes are not paid. “But the Act does not make any provision if the government defaults on payments,” the petitioner said.

The government lawyers have to file their replies and the case has been adjourned till October 19.