NMC targets property tax defaulters: Bank accounts to be frozen, TVs, properties seized

Nagpur : The Nagpur Municipal Corporation (NMC) is preparing for an aggressive citywide crackdown on property tax defaulters, with plans to freeze bank accounts of commercial establishments and seize movable and immovable assets to recover long-pending dues.

The civic body’s special recovery campaign will begin on August 20 and continue until September 30, with more than 400 personnel from the tax department and other civic wings deployed across all 10 zones.

NMC Commissioner Vipin Itankar has set an ambitious target of recovering at least Rs 1,000 crore during the drive from the estimated Rs 2,400 crore in accumulated property tax arrears.

The hard-hitting strategy was finalised at a special meeting of tax collectors held at District Planning Bhavan on Tuesday. Itankar directed officials in all 10 zones to put property tax recovery at the top of their agenda and adopt a zero-tolerance approach towards persistent defaulters.

Commercial properties first in line

The NMC will initially focus on commercial, mixed-use and other non-residential properties, besides vacant plots. Special attention will be paid to major defaulters, including 703 properties with arrears exceeding Rs 5 lakh and another 3,924 properties owing between Rs 1 lakh and Rs 5 lakh.

Recovery teams will conduct intensive field visits and will be equipped with POS machines so that property owners can make payments immediately at their premises.

The civic body has also warned that failure to clear dues could result in the disconnection of water and sewerage connections, adding further pressure on defaulters to settle their accounts.

TVs, refrigerators and other assets can be seized

The NMC is invoking its recovery powers to go after movable assets of defaulters. Under Rule 42, civic officials will issue warrants for the seizure of movable property, including televisions, refrigerators and other valuables, while immovable properties can also be attached as part of the recovery process.

The Water Supply and Solid Waste Management Departments have been directed to assist the tax department during the campaign and support enforcement action against chronic defaulters.

For commercial establishments, the NMC is preparing an even stronger financial action.

The civic body’s Service and Fee Department will obtain details of bank accounts linked to defaulting establishments and initiate the required legal process for freezing the accounts to recover outstanding property tax.

The move is expected to put significant pressure on large commercial defaulters who have allowed tax liabilities to accumulate despite repeated demands for payment.

Weekly review of recovery

Itankar has ordered weekly reviews of the campaign, with zone-wise recovery figures to be closely monitored. Officials will be expected to account for their performance and step up action wherever recovery remains below target.

The NMC has made it clear that the campaign will not be accompanied by any waiver of penalties. Taxpayers with outstanding dues have been urged to clear their liabilities immediately to avoid coercive recovery measures.

With the civic body staring at property tax arrears of around Rs 2,400 crore, the latest drive represents one of its most aggressive attempts yet to convert pending dues into actual revenue.

The message from the NMC is unequivocal: defaulters who continue to sit on their dues could now face action ranging from utility disconnections and seizure of household and commercial assets to attachment of properties and freezing of bank accounts.

Source: Nagpur Today