Covid casts a shadow on Mohali MC earnings

Sanjay Bumbroo
Tribune News Service
Mohali, September 28

The Mohali Municipal Corporation is likely to witness a dip in property tax collection this year due to the Covid-19 pandemic.

According to information, the MC had generated Rs28 crore in the fiscal 2019-20, which is likely to go down this financial year. GMADA, the Deputy Commissioner’s office and the police department are the major defaulters, owing Rs90 lakh, Rs12 lakh and Rs1 crore, respectively, to the civic body.

In figures

The Municipal Corporation records show that Mohali has 52,678 properties. Of these, 41,082 are residential, 4,929 commercial and 1,683 industrial. There are 4,984 vacant plots.

MC records show that Mohali has 52,678 properties. Of these, 41,082 are residential, 4,929 commercial and 1,683 industrial. There are 4,984 vacant plots.

In March this year, the MC had issued ‘Demi Official’ (DO) letters to the Police Headquarters, the DC office and the Greater Mohali Area Developmental Authority (GMADA) for default in property tax payment.

Major defaulters

• The MC had generated Rs28 crore in the fiscal 2019-20, which is likely to go down in the currrent financial year. GMADA, the DC office and the police department are the major defaulters, owing Rs90 lakh, Rs12 lakh and Rs1 crore, respectively, to the MC.

GMADA-owned sports complexes owe Rs50 lakh property tax to the MC. There are three sports complexes in Mohali, which are under GMADA. The MC has to collect a total of Rs6.5-crore property tax from 7,826 defaulters.

MC officials said the Police Department was refusing to cough up the dues claiming that the owner of the Old Police Complex was responsible for clearing the outstanding. The department had now moved to the new building in Sector 7.

The Punjab Government, keeping in mind the hardships being faced by residents due to the pandemic, had extended the deadline to pay house tax or property tax without any penalty. People can pay these taxes with 10 per cent rebate till September 30.

Mohali MC Commissioner Kamal Kumar Garg said persons, who failed to deposit house tax or property tax by September 30, might deposit the principal amount, along with penalty at the rate of 10 per cent thereafter. He said on failure to do so, the defaulter would have to pay 20 per cent penalty. They had been sending notices to the defaulters from time to time to pay the property tax.