The Hindu : Andhra Pradesh News : VMC attempts to seize R&B properties

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Wednesday, Dec 12, 2007
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Andhra Pradesh

Andhra Pradesh

VMC attempts to seize R&B properties

Staff Reporter

Non-payment of tax by the department the trigger

Corporation hopes other defaulters will fall
in line
Irrigation Department too is locked in a
dispute with VMC

VIJAYAWADA: The Vijayawada Municipal Corporation officials stopped short of seizing the properties of the Roads & Buildings (R&B) Department in the city on Tuesday following the latter not paying the property tax dues of the last six to seven years.

A team of officials led by Assistant Commissioner (Revenue) B. Lalitamba went to the R&B offices located in Circle-II and Circle-III.

The seizure of properties was put on hold till December 26, following the requisition from the R&B Department.

The R&B Department has to pay Rs. 20 lakhs as property tax to the VMC. The R&B Department has to pay a tax of Rs. 12 lakhs in Circle-I and Rs. 8 in Circle-III, VMC officials said.

Deadline passes

The corporation wrote a letter in the first week of November asking the R&B Superintending Engineer (SE) to clear all the dues immediately.

The R&B officials sought time till November 30, stating that the government was yet to release the budget. The R&B officials, however, “failed to pay” the dues by November 30, corporation officials said.

The R&B department sought another week time, when the corporation, subsequently, dashed off another reminder in December first week.

As the time sought by the R&B ended, the VMC authorities decided to seize the properties on Tuesday.

The VMC officials were hoping that this move would help them in making other defaulters fall in line.

With this move, the defaulters would “realise” that the VMC would not spare even if the non-payer was a government department, the officials said.

The corporation collects property tax from BSNL, the electricity department and other government agencies. It was deducting the property tax before paying the telephone and electricity bills to BSNL and electricity departments, respectively.

The Irrigation Department, another “major property tax payer”, is yet to pay the property tax, and it is asking the VMC to pay royalty on the water drawn from river Krishna to supply drinking water to the city’s population.

The VMC and Irrigation Departments were negotiating in this regard, the officials said.

The railways were also not paying property tax to the VMC for more than seven to eight years.

The railway officials cite Supreme Court judgements that it was exempted from property tax, VMC officials said, adding that they wrote a letter again to the railways recently.

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