Madurai corporation recovers 15% of pending Rs 24.38 cr commercial property tax dues

The corporation has Rs 24.38 crore in pending commercial property tax, of which over Rs 4 crore, or 15%, has been recovered so far.
Madurai Corporation
Madurai CorporationPhoto | EPS
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MADURAI: The Madurai corporation has recovered more than Rs 4 crore, about 15% of the Rs 24.38 crore commercial property tax arrears pending across the city since 2019 (period differs on each cases), as it intensifies action against defaulters in all 100 wards, including issuing notices that could eventually lead to property takeover and auction.

Speaking to TNIE, a senior corporation official, on condition of anonymity, said the civic body has a total commercial property tax demand of Rs 24.38 crore pending. Of this, the corporation has so far recovered more than Rs 4 crore, accounting for around 15% of the outstanding amount.

“Special attention is being given to long-pending property tax arrears. Notices are being issued in a phased manner, and property owners are being given sufficient opportunity to clear their dues before further action is initiated. Many cases have also been addressed after legal procedures,” the official said.

As part of the intensified recovery drive launched over the past month, the corporation issued Form 4 notices to around 296 property owners. The notice serves as an intimation to property owners about the pending tax amount and calls upon them to clear the dues.

If the dues remain unpaid even after the subsequent proceedings, the corporation will issue a Form 7 notice, the final stage of the recovery process. Officials said property owners would be given 15 days from the date of issuance of the Form 7 notice to clear the arrears. So far, around 30 property owners have been issued Form 5 notices.

“If the owner fails to pay the dues within the stipulated 15 days, the property can be taken over by the corporation and subsequently brought to auction as per the prescribed procedure. Over the past month, around six Form 7 notices have been issued in the city. These include a private school in Thiruparankundram in Zone 5, the official added.

Of the properties that crossed the stipulated period, action has already been initiated against two. In one case involving a private marriage hall, the owner cleared pending property tax dues amounting to `36 lakh, following which the takeover proceedings were dropped.

In another case involving a commercial property, the owner failed to clear the arrears despite the notices. The corporation subsequently took over the property, and the rent being paid by the occupant is now being remitted to the civic body. Officials said the property would be auctioned soon if the dues are not settled in accordance with the rules.

Welcoming the drive, P Balamurugan, president of Madurai Infra and Development (MID), said, “Several areas still lack basic amenities, including proper garbage collection and adequate water supply. Corporation address these gaps and create better infrastructure, particularly to support commercial establishments.” 

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