North corp will attach movable assets of property tax defaulters

Assets such as cars, fixed deposits, mobile phones, laptops and other valuable items of non-payers will be attached to recover money and to caution people

NEW DELHI:: In a first, the North Delhi Municipal Corporation will start attaching movable properties of major property tax defaulters under its jurisdiction.

According to the new plan, the corporation will attach movable assets such as cars, fixed deposits, mobile phones, laptops and other valuable items of tax defaulters to recover the money. The aim of such an exercise is to sensitise taxpayers to pay up on time.

Till now, the standard practice is to attach immovable property such as land, house, and shops of tax defaulters.

Naina Soin Kapil, additional commissioner (revenue), North Delhi Municipal Corporation, said they were consolidating data of tax defaulters and the drive to attach movable assets would start next week.

She said under section 156 of the Delhi Municipal Corporation (Amendment) Act 2003, the civic body had the power to attach movable assets of property tax defaulters.

“We are going to be more aggressive against tax defaulters. We will start attaching movable assets such as fixed deposits, car, mobile phone, laptop or any other movable valuable item to recover dues. Attaching immovable assets such as house, land or shop needs formalities while movable assets are easy to dispose of,” she said.

She said the corporation had to take such measures to force people to come forward and pay taxes on their own. Notices had been issued to around 50,000 big tax defaulters.

“We have set up a target to mop up Rs 175 crore by the end of this month (March). So far, our overall tax collection stands at Rs 513.11 crore, slightly higher than last financial year’s tax collection of Rs 508 crore,” Kapil said.

The north corporation has been reeling under a fund crunch ever since the municipal corporation of Delhi was trifurcated in 2012. According to municipal officials, there are around 12 lakh property tax

payers under the north civic body’s jurisdiction but only 4.25 lakh regularly pay their property tax.

A senior official said in the current financial year, the civic body attached 734 properties, most of them shops, from where it has to get Rs 45.66 crore.

“Out of 734, we have de-attached 225 properties after their owners paid dues, which fetched us Rs 7.53 crore. Our revenue collection will certainly go up after we start attaching movable assets,” the official added.

AN OFFICIAL SAID IN THE CURRENT FINANCIAL YEAR, MCD ATTACHED 734 PROPERTIES, MOST OF THEM SHOPS, FROM WHERE IT HAS TO GET ₹45.66 CRORE.