Premium
This is an archive article published on January 9, 1998

MCD’s big debtors are govt agencies

NEW DELHI, January 8: Government agencies top the list of chronic property tax defaulters in the city. The list which is headed by the Delhi...

.

NEW DELHI, January 8: Government agencies top the list of chronic property tax defaulters in the city. The list which is headed by the Delhi Development Authority (DDA), also includes the Public Works Department (PWD), the Central Public Works Department (CPWD), the Railways and the slum department.

According to the calculations of the Assessment and Collection department, government agencies in the Capital owe the MCD more than Rs 340 crore as property tax.

The DDA alone owes more than Rs 293 crore. The arrears which have been accumulating for a long time have virtually been written off by the MCD. As per the procedure, the department has the right to freeze the defaulter’s accounts, attach their rents and in extreme cases even sell their property.

Story continues below this ad

However, none of these measures can be enforced as far as these government agencies are concerned. According to sources, though demand notices have been sent to the DDA time and again, nothing has come out of it.

The problem is much the same with other bodies. “We have written several letters to them asking them to pay their taxes. But frankly speaking, we can only try to persuade them and that we are doing. We can’t really force them to pay their taxes and they know it too,” said a senior official. In several cases the organisations concerned have gone to court.

However, the accounts of India Habitat Centre (IHC) which owed them Rs 4.37 crore, have been attached.

Other miscellaneous autonomous bodies including Bharat Petroleum, Gas Authority of India Limited (GAIL), Indian Oil Corporation (IOC), Housing and Urban Development Corporation Limited (HUDCO) have to collectively cough-up a whopping Rs 212 crore.

Educational institutions owe the MCD more than Rs 92 crore.

Story continues below this ad

In cases like the slum department, the matter has been referred to the committee of disputes, which looks into the inter-departmental problems.Says Divjyot Kohli, Assessor and Collector: “Actually it is in February and March that people start paying their taxes and we are hopeful thatall of them will pay their arrears. Last year, the PWD paid us Rs eight crore in March and we hope that others also will pay us this year.”

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement