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This is an archive article published on August 6, 1999

Property values tax corporators

MUMBAI, August 5: The General Body of the Brihanmumbai Municipal Corporation BMC today denounced the Assessment and Collection Departme...

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MUMBAI, August 5: The General Body of the Brihanmumbai Municipal Corporation BMC today denounced the Assessment and Collection Department for doling out largesse to developers Shapoorji Pallonji by reducing property tax levied on two of their plots near the Gateway of India.

The issue, which was raised by Bharatiya Janata Party corporator Rajesh Sharma through a point of order, drew support from all corporators. Sharma told the House that the property taxes on two plots next to Taj Mahal hotel were reduced on April 1, 1996, when the rateable value of the plots were being assessed, from Rs 4.51 crore to Rs 34 lakh and from Rs 45 lakh to Rs 4 lakh respectively.

8220;While the general public is paying through its nose, the rateable value of these properties was incorrectly calculated and lessened to favour the builders8217; lobby,8221; he said, accusing the department of causing losses worth crores of rupees for the corporation. Sharma, who was chairperson, Markets and Gardens Committee in the erstwhileMayor-in-Council system, has extensively studied the octroi situation under the Assessment and Collection Department.

Sardar Tara Singh also said the decision smacked of outright corruption. 8220;Normally, the property tax assessment is done at the ward level. But any decision to increase or decrease it can be taken only at a higher level in the department,8221; said Singh, requesting Mayor Hareshwar Patil to reserve the point of order and look into the matter. Sena8217;s Vijay Daruwale accused the administration of favouring the affluent. 8220;What was the motivation in granting such largesse? The BMC has one rule for the rich and another for the poor. Look at China Garden, it got away with such graces bestowed by the administration. In comparison, a hutment is razed within minutes,8221; he said.

Leader of the House, Sena8217;s Digamber Kandarkar, added that under the BMC8217;s rules, even the municipal commissioner cannot challenge the decision of the Assessor and the Collector. 8220;Within a month, the administration shouldinquire and submit a report. Those involved should be taken to task,8221; he demanded.

Additional Municipal Commissioner Subodh Kumar said the matter was being investigated and a report is to be prepared by Assessor and Collector P B Janwalkar. The report will be submitted in a month8217;s time to the house.

Kandarkar further said the former Mayor-in-Council had recognised the disparity in assessment and payment of property taxes in the city and suburbs and had commenced spadework to bring about some order. 8220;In the city, which has all infrastructure in place, citizens pay lesser property taxes, while suburbanites without the benefit of infrastructure pay mammoth taxes,8221; he pointed out.

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Mayor Hareshwar Patil concurred that suburbanites were utterly dissatisfied with paying disproportionate taxes. He announced that a uniform system of tax payment would be ready by December, whereby property taxes would be lowered in the suburbs and made nominal in gaothan areas. Patil said he has deputed an officer to reportto him on this matter.

 

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