The Pune Municipal Corporation (PMC) is launching a proactive initiative to address property owners who have long eluded their property tax payments. In a bid to fortify its revenue streams, the PMC has resolved to auction a portion of these delinquent properties. The inaugural phase of this property auction, set to commence next month, will focus on 200 substantial properties out of the 1,618 properties identified in the city.
Municipal Commissioner Vikram Kumar asserted, “The Property Tax Department has taken action against 1,618 properties, and our plan is to auction 200 properties in the first phase, scheduled for October.”
Rising expenditures have necessitated the PMC’s pursuit of augmented revenue sources. The corporation’s principal streams of income encompass construction development charges, GST refunds, and property tax.
For the fiscal year 2023-24, an estimated property tax revenue of Rs 2,400 crores is anticipated, with the PMC’s treasury already enriched by Rs 1,400 crores. Predominantly sourced from residential properties, this tax revenue serves as the backbone of PMC’s finances. Concurrently, efforts are underway to enhance earnings from non-residential properties. Consequently, property owners in default of their tax obligations are now on notice, with their properties subject to sealing.
Properties belonging to owners who have reconciled their tax liabilities have seen their seals removed. However, for those who persist in their non-compliance, the PMC is resolute in its intent to recover arrears through property auctions.
Proceeds arising from these auctions will first be allocated to clear the outstanding arrears, with any surplus being duly remitted to the respective property owners. To date, the PMC has enforced seals on a total of 1,618 properties, accounting for a cumulative outstanding amount of Rs 96 crores, 27 lakhs, and 918 rupees.
It is important to note that the auction process will not be immediate for all sealed properties. Priority will be afforded to properties strategically positioned on main thoroughfares, prominent locations, and those free from legal disputes. Only after completing a series of requisite legal procedures, including property assessments, notifying concerned landowners, and ensuring public transparency, will auctions progress.
To facilitate a seamless auction process, personnel from the Property Tax Department have diligently undergone training, ensuring adherence to legal prerequisites. Following a recent workshop, a convened meeting has culminated in the formulation of a comprehensive timeline for the forthcoming property auctions.
