‘Penalty paid by owners will now be considered as property tax’ 

ST Correspondent
Wednesday, 30 May 2018

The State government’s decision to waive the double penalty in property tax levied on unauthorised constructions comes as good news for many owners in Pimpri Chinchwad. The penalty paid by the owners who are now getting relief, will be considered as property tax.

Pimpri: The State government’s decision to waive the double penalty in property tax levied on unauthorised constructions comes as good news for many owners in Pimpri Chinchwad. The penalty paid by the owners who are now getting relief, will be considered as property tax. The decision was taken by the State Cabinet at a meeting held on Tuesday. 

The State government said the double penalty for unauthorised constructions will be waived with retrospective effect. BJP MLAs Laxman Jagtap and Mahesh Landge were following up this issue rigorously with the State government. 

Giving details about the decision, MLA Jagtap said, “The double penalty on illegal constructions was imposed from May 2008. The Pimpri Chinchwad Municipal Corporation (PCMC) started collecting double penalty tax since 2012.” 

“Those who have paid the penalty on the tax will also be benefited as their penalty will be considered as paid property tax. They will not have to pay property tax for some more years,” he said. In April, Bhosari MLA Mahesh Landge had appealed to people not to pay the double penalty levied on illegal constructions. He demanded a complete waiver of the double penalty tax. 

Landge had called a meeting of traders and entrepreneurs who were served notices by the PCMC to pay penalty for unauthorised constructions.  

The civic body collected penalties amounting to Rs 127.44 crore in past six years, ever since the double penalty tax has been imposed. Rs 46.01 crore has been collected in the financial year 2017-18 alone. The civic body, with an intention to increase its revenue, had intensified efforts to recover pending dues. 

According to civic officials, the civic body recovered penalties from 12,260 residential property owners and 1,823 non-residential property owners. The amount collected from residential properties this year is Rs 31.75 crores and from non-residential properties is Rs 14.26 crore. 

The State government had first issued a GR in 2008 allowing the civic body to collect penalties amounting to double the property tax for unauthorised constructions. But the civic body started collecting penalty charges from 2012-13 onwards. Till 2016-17, the PCMC recovered Rs 81.43 crore.

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