Illegal Structures in Mumbai in ‘Property Tax Bracket’

June 1, 2007	(Be the first to rate this story!)  Loading ...
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People owning apartments in illegal buildings in townships of Kalyani, Dombivli and Mira- Bhayander will require to pay twice the amount of property tax as fine. The major locations in Mumbai Metropolitan Region (MMR) can therefore turn out to be a prohibitive choice.

The state’s Urban Development Department has decided to lay down the penalty as a ‘distinctive’ to the increasing number of illegal establishments coming up in townships and urban areas of the state.

The state cabinet has approved an amendment to the Bombay Provincial Development Municipal Corporation Act, the Nagpur Municipal Corporation Act and the Maharashtra Municipal Councils Act, and made for the penalty in principle.

The legislature will consider over the amendments in the monsoon session and then made applicable in the state.

The penalty will be brought into effect in all urban areas and upcoming townships in the state except in Mumbai.

MMR alone has over a lakh of illegal establishments. Kalyan-Dombivli Municipal Corporation has over 25,000 illegal buildings.

The law will help to bring the fact forward that illegal constructions also have to pay property tax. The penalty norm will also be applicable to Ullasnagar and Kalyani Dombivli once property tax is rationalized depending ion market value instead of the rent based system. The final decision will be declared on 13th June 2007.

In addition, the Cabinet on Wednesday approved raising the gratuity ceiling of employees, including professors aided universities due to retire anytime from June 1, from Rs 2.5 lakh to Rs 3.5 lakh.

The penalty will prevent the construction of illegal buildings. It will also make municipal corporations and councils more watchful regarding collection of property taxes and the penalty, says S.C Benjamin, secretary, Urban Development.

News Published Under:   Mumbai |

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