Schools top list of property tax defaulters

Top 100 defaulters owe the Corporation close to Rs.5 crore

July 06, 2016 12:00 am | Updated 05:41 am IST

MONEY MATTERS:Auction of rights to collect fees from visitors to Rajaji Park fetched a huge sum.— file photo

MONEY MATTERS:Auction of rights to collect fees from visitors to Rajaji Park fetched a huge sum.— file photo

Out of the top 100 property tax defaulters in Madurai Corporation, the first three are private schools, which produced toppers and State rank holders.

The top 100 defaulters owed the Corporation close to Rs.5 crore, of which the schools accounted for 30 per cent.

Baffling to know that the educational institutions, mostly run in the name of trusts, have approached courts challenging the tax levied on them.

While in some cases, the courts had directed the assesses to remit the arrears to the Corporation of Madurai, in a few others, the educational institutions had moved appellate authorities in this regard, challenging the lower court order.

The Parent-Teachers’ Associations functioning in many schools suggested that schools should set an example and be a role model by remitting taxes to the government promptly.

They can seek relief, but not give an impression of being a business house.

When most of the educational institutions collected hefty fees and donations under different heads, they should be equally accountable when it comes to paying taxes, they added.

Rs.90-crore demand

The collectable property tax demand for the current year (2016) is close to Rs.90 crore.

However, the arrears to the Corporation is a whopping Rs.70 crore till date.

In a bid to step up collection and recover arrears, Commissioner Sandeep Nanduri had initiated a number of steps by reviewing the progress on a weekly basis, officials said.

By tightening loose ends, the revenue officials claimed that they were collecting close to Rs.80 lakh to Rs.100 lakh daily for the last 30 days from all the four zones.

Apart from the collections, surprise and random checks on properties too had revealed that there were differences in assessment. For instance, when the Commissioner and team inspected a property in zone 1, the actual measurement and the plinth area in the records did not match.

From one assessment alone, the officials recovered close to Rs.40 lakh after revising the property tax.

Speaking to The Hindu , Mr. Sandeep Nanduri said that they had commenced a 100 per cent check on all the major buildings, especially in commercial zone.

Already, in coordination with TANGEDCO officials, the Corporation had identified buildings, which had commercial service connections.

According to the data, 11000 assessments were now identified for a fresh survey since the property tax component would change. Steps were also being taken to vacate stay obtained by petitioners and through judicial intervention, the Corporation would intensify the drive to get its dues, he said.

The number of profession tax assesses is just 37,000 in the city.

The uncovered assesses would be identified and brought under the net shortly through a drive, he said and added that buildings, which had more than one water service connection, were now under scrutiny.

The current demand for water tax was Rs.12 crore and drainage tax stood at Rs.23 crore. In all, including arrears, the Corporation’s demand stood at Rs.268 crore.

Rajaji Park

By letting out parks, markets, parking lots, pay-and-use toilets and market space on public auction, the Corporation earned revenue annually. The revenue got from auction from Rajaji Park had gone up by a huge 90 per cent this time.

From a meagre Rs 35 lakh last year, the Corporation realised close to Rs.100 lakh this year through public auction conducted last week, Mr. Sandeep Nanduri said.

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