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This is an archive article published on February 8, 2010

Plan to revive p-tax disputes board

In yet another effort to get out of its financial crisis,the BMC is looking at reviving the settlement advisory board to solve property tax disputes out of court.

FUNDS CRUNCH: BMC looks at faster,higher income

In yet another effort to get out of its financial crisis,the BMC is looking at reviving the settlement advisory board to solve property tax disputes out of court.

The three-member board,in operation from April 2006 to November 2008,had brought over Rs 364 crore to the BMC coffers.

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Three civil court judges were members and heard disputes on outstanding dues,seeking to make the litigant and the BMC agree on a settlement amount.

About two-thirds of the total payable property tax,a major income source,remains outstanding due to disputes over the assessment.

“The board stopped functioning towards the end of 2008 as the sanctioned period ended. Now we feel the need to reconstitute it to expedite pending cases that will help us recover more and increase our cash liquidity,” said chief assessor and collector N.A. Pathan.

The BMC has also identified a plot of land in Kandivali East to set up an additional court for small causes and expedite hearing of property tax disputes. It has sanctioned Rs.1.5 crore in the budget. At present,the only such court is the Court of Small Causes in Dhobi Talao.

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“About 60-80 cases pertaining to property tax disputes are heard daily,some pending for over 20 years now. Setting up a new court will ease half the pressure on the current court and double the speed at which cases are disposed,” said Pathan.

During the board’s tenure,2006-07 saw the BMC collect Rs 1755 crore of a demand of Rs.4,523 crore. After it wound up,the 2008-09 collection was Rs.1934 crore of a demand of Rs.5416 crore. Of the 396 cases since 2006 where the litigant agreed to an out-of-court settlement,256 cases had been settled by the board.

FEELING THE NEED

Under dispute

* Rs 1674 cr (2,171 cases) in small causes court

* Rs 362 crore (309) in High Court

* Rs 16 cr (10 cases) in Supreme Court

* Rs 60 cr (38 cases) in city civil court

This year: demanded Rs 7,832 cr,collected Rs 2,239 cr.

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