PUNE, 4 NOV. In view of the upcoming Municipal Corporation (PMC) elections, the State Government is preparing to launch the “Abhay Yojana” (Amnesty Scheme) for property tax defaulters. The administration has prepared and sent the proposal to the State Government, and a final decision is expected within the next two to three days. As the announcement for Zilla Parishad, Panchayat Samiti, and Nagar Parishad elections is imminent, this popular decision is likely to be taken before the Model Code of Conduct comes into effect. The opposition alleges that this scheme is being introduced purely for political gain to the ruling Maha-Yuti government, especially the Bharatiya Janata Party (BJP).
₹17,600 Crore Outstanding Dues
Currently, the Pune Municipal Corporation has property tax arrears of approximately ₹17,600 crore. This includes ₹2,000 crore from the newly merged 32 villages, ₹4,250 crore from mobile towers, and approximately ₹11,000 crore from the old city areas (Note: The total of the mentioned figures in the text seems to be $\approx$ ₹17,250 crore, but the headline figure is ₹17,600 crore). Property tax is the PMC's main source of income, with an annual target of ₹3,000 crore. Over ₹1,500 crore has been recovered in the first half of this year, but the majority of the arrears belong to large commercial establishments and government offices.
The Scheme Has Been Introduced Before
The Abhay Yojana was also implemented in 2016, 2020, 2021, and 2022. While the scheme provided relief during COVID, it has also been criticized multiple times as being "introduced for political purposes." In these schemes, taxpayers were given a waiver of up to 70–80% on penalties and interest.
Injustice to Honest Taxpayers
Social activists argue that it is an injustice to honest citizens who pay their taxes on time, as large institutions and defaulters are repeatedly given waivers. Despite this, some MLAs had demanded the scheme in the Assembly. The State Government has recently ordered a halt to action against defaulters in the newly merged villages, which has slowed down the recovery process. Citizens in these areas have raised the question: "Why should we pay tax when there are no basic facilities?"
Past Experience with the Abhay Yojana
In 2020-21, 1,49,683 defaulters paid their taxes by taking advantage of the scheme, but the penalty waiver caused a loss of ₹210 crore to the PMC. The following year, 66,454 taxpayers benefited, resulting in a loss of ₹64 crore. What is shocking is that 42% of the beneficiaries from 2020-21 and 67% of the beneficiaries from 2021-22 have again become defaulters by December 2024.
PMC's Focus on Big Defaulters
The Municipal Corporation's tax department has prepared a list of the top 100 big defaulters, who collectively owe ₹334 crore, including penalties. Action for property seizure and auction will soon be initiated against them. The total outstanding amount currently is approximately ₹11,000 crore, of which ₹4,000 crore belongs to mobile tower companies.
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“If the PMC has to implement the Abhay Yojana, it is necessary to frame strict rules. Property owners who have benefited from it before should not be given the waiver again. If it is given, a written undertaking should be taken from them that they will not default in the future. Otherwise, this scheme will be an injustice to honest taxpayers.” – Vivek Velankar, President, Sajag Nagarik Manch.
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