No data with MCG on 34 defaulters with 97cr tax dues

Time of India

5 days ago

Gurgaon: An audit of the MCG joint commissioner's office found that the corporation has no records of 34 property owners who have not paid taxes amounting to nearly Rs 97.2 crore.
Without the details of the owners, there is little action that the corporation can take to collect this property tax, the principal accountant general pointed out in the report for the audit carried out this Feb.
"In the absence of the names of the property owners, chances of serving notices and initiating legal action to such property owners were negligible. There might be very bleak chances of recovery of outstanding property tax from these properties," the report said. It added that "considering the financial interest of MCG", authorities should take up the matter with revenue officials for identifying the property owners.
MCG, the report said, had "failed to take action" to recover taxes from defaulters, leading to accumulation of dues.
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The auditor also sought explanation from MCG regarding the failure to recover taxes and the lack of enforcement measures against the defaulting owners.
Asked about the report, an MCG official told TOI on Wednesday that the corporation is trying to "retrieve" the records of the defaulters.
Other than stamp duty and advertisement fees, property tax is a key revenue source for the corporation.
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In the 2024-25 fiscal year, MCG collected Rs 232.9 crore in property taxes. It has projected income from property tax at Rs 275 crore this fiscal year.
According to the audit, there are 120 property tax defaulters, each of whom owes the corporation more than Rs 1 crore. In total, dues from unpaid property tax stand at Rs 280.6 crore, other than Rs 18.4 crore fire tax and Rs 35.6 crore in development charges.
Kuldeep Yadav, a city councillor, said it was "unacceptable" that such a massive sum of taxes has not been collected. "The audit report's findings are a scathing rebuke of MCG's inability to fulfil its basic responsibilities. It is clear that MCG has been asleep at the wheel, allowing tax evaders to go unpunished while the public suffers. Heads should roll over this scandalous dereliction of duty," he said.