Date:12/12/2007 URL: http://www.thehindu.com/2007/12/12/stories/2007121259230100.htm

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VMC seeks to seize R&B properties

Staff Reporter

Department’s failure to clear dues the trigger

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.

The corporation dashed off a letter in the first week of November asking the R&B Superintending Engineer to clear the dues immediately. 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, sent 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 the electricity department, respectively.

Major ‘defaulter’

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

The VMC and the 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.