Madras HC raps Chennai Corporation over delay in revising property tax

Directing the Commissioner to take a decision regarding the revision of property tax at the earliest to avoid continued loss to the Corporation, Justice N Kirubakaran said, “Citing the absence of the Council, the Corporation cannot postpone the revision of property tax endlessly causing huge revenue loss to the Corporation, which is responsible for providing better facilities, infrastructures to the residents of Chennai city, especially to vast extended areas.” Though the plea before the judge had challenged the property tax demand in respect of a shop at Koyambedu from 1996 up to 2015, Justice Kirubakaran on finding that the property tax revision had transpired last in 1988, raised the query as to why the property tax has not been revised for these many years.

Responding to this, the Commissioner had submitted that as per section 98 of the Chennai City Municipal Corporation Act, 1919, the Council is empowered to levy property tax. However, though the Corporation had submitted a proposal suggesting increase in property tax on two occasions in 2010, the Council had returned the proposal.

Observing that the reluctance of the elected representatives to revise the property tax, obviously for political reasons, had cost the Corporation dear, Justice Kirubakaran said, “For the past two decades, Chennai City has developed to a large extent and many IT companies, multinational companies and multi-storied buildings have come up. If those properties are assessed to tax, it would fetch more than Rs 2,000 crore, compared to the present collection of Rs 264.92 crore.”