PMC Faces Rs 274 Crore Loss
Property Tax Amnesty Scheme Backfires: The Pune Municipal Corporation’s (PMC) property tax amnesty scheme, implemented four years ago, has shown concerning results with nearly half of the beneficiaries returning to default status, raising questions about the program’s long-term effectiveness.
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Introduced in 2020-21, the scheme offered defaulters an opportunity to clear their dues by waiving interest and penalties. A total of 1,49,683 defaulters participated, though this resulted in a significant Rs 210 crore loss for PMC. The following year (2021-22), the scheme attracted 66,454 defaulters, leading to an additional Rs 64 crore loss.
Recent Right to Information (RTI) data revealed alarming statistics: By December 31, 2024, 42% (63,518) of the 2020-21 scheme beneficiaries and 67% (44,685) of the 2021-22 participants had returned to defaulter status.
Vivek Velankar, President of Sajag Nagrik Manch, highlighted these concerning figures: “This data exposes the misuse of amnesty schemes. While honest taxpayers face penalties, defaulters repeatedly benefit. They’re now confident that future amnesty schemes will exempt them from penalties.”
The impact extends beyond financial losses, affecting civic responsibility. Regular taxpayers have expressed frustration, arguing that such schemes reward non-compliance while penalizing punctual payment.
Velankar has urged PMC to take immediate action to recover dues from nearly 100,000 property owners who defaulted after benefiting from the amnesty scheme. He also recommended barring repeat defaulters from future amnesty programs.
Experts suggest PMC should focus on stricter enforcement measures, including legal action and property seizures, rather than relying on amnesty schemes to prevent financial losses and improve compliance rates. (Property Tax Amnesty Scheme Backfires)
