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4,773 residential properties may be deprived of water in Ahmedabad

Water & drainage connection of 50 properties disconnected for tax recovery.

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The Ahmedabad Municipal Corporation (AMC) is using a carrot-and-stick policy for augmenting property tax collection. AMC’s tax department could recover only around 30% of its existing tax demand. It has offered an interest waiver scheme, but on the other hand, it has also prepared a list of 4,773 big properties which face harsh action if their owners fail to pay the dues. Till now, the civic body has disconnected water and drainage connection of around 65 residential properties in different zones of the city.

There is a notion that owners of big properties never default in payment of property tax. However, municipal commissioner Guruprasad Mohapatra has shortlisted 4,773 residential units with carpet area of more than 200 sq m, whose owners had not paid tax for a long time.

Since January 1, AMC’s tax department has been sealing commercial buildings for recovery of dues. Recently, it started disconnecting water and drainage lines of residential units as these could not be sealed. It has disconnected the lines of 50 residential properties. Of these, 34 are located in the north zone, five each in west and central zone and three each in south and ‘new west’ zone.

AMC initiated action against 336 property owners last week for non-payment of tax. As a result, the civic body could collect around Rs56 lakh, which were pending for a long time, said sources in the tax department.

The move to select bigger properties aims at busting the myth that big people can escape from the law, the sources said. “Now people will understand that anybody can be deprived of water and drainage facilities in case taxes are not paid regularly.”

The civic body has, time and again, introduced interest waiver on property tax. The last extension was granted on January 31 so that those who were yet to pay could avail of the scheme until February 21.

In the budget for 2012-13, AMC had estimated an income of Rs401 crore from property tax but had to revise it to just Rs350 crore. So, there was no alternative but to take strict action against defaulters, the sources argued.

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