The Nagpur Municipal Corporation’s (NMC) activity and action against property tax defaulters by selling their properties through auctioning has ended up being a decision that is much less impressive than expected. It has restored the properties of approximately 100 defaulters after the auctioning close out procedure, bringing up the issue stamp over the whole process of community body’s auction approach which approves and authorizes the civic head to restore the property and end the sale procedure if the proprietor pays every one of the duty and charges within 20 days of the auction.
This has also put at risk the vigorous and determined attempts and endeavors of effective bidders at the auction who need to pay 25% of the auctioned price and participants who have to pay a sum of Rs. 10,000 per head as registration fees. The erroneous process has prompted a stewing frustration among bidders as they may not partake in any of the NMC’s auction process in future.
With regard to information given by NMC, the procedure to sell around 200 properties for recuperation of property tax unpaid debts completed between November 2017 and March 31, 2018, and out of this, auction of around 110 properties was completed effectively and successfully. “After the auction process, around 100 defaulters turned up and assured to pay the arrears. The NMC recovered arrears, expense incurred for auctioning process and 10% of the auctioned amount to be paid to successful bidder. Then, the NMC returned the properties to defaulters”, said the sources. They also added that due to the fact that this is a lengthy and a hard to enforce process, the successful bidders might find it very difficult to their 25% money back. None of the effective and successful bidders got the auctioned properties in the last seven months, since November, in the remaining 10 cases either is also noted.
In around 90 properties out of 200 which was to be auctioned and sold, the NMC has dropped the auction closeout procedure on time. According to the NMC authorities, the defaulters turned up and paid the unfulfilled obligations and dues so the auctions were dropped and cancelled.
In several cases out of the 10 cases, the defaulters have documented petitions in the high court. In the remaining, the NMC has not yet issued a self-endorsement to the effective and successful bidders for getting ownership and possession of the property. The NMC propelled auctioning process after its different techniques for recuperation of around Rs378 crore unpaid debts fizzled. The civic body additionally propelled a scheme of reprieve in which aggregate sum of overdue debts and interest should be relinquished. Of aggregate 2.30 lakh defaulters, under 10,000 turned up under the scheme. Later, the civic body decided to auction the properties of defaulters. Presently, the NMC has arranged around 2,247 properties available to be purchased of which dates for 40 has been declared up until this point.
Courtesy/By: Prithvi Bharadwaj
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21 Jun 2018
