BMC intends to retrieve Rs 10 crore tax from Nirav Modi’s properties.

Abhay Shah - March 6, 2020

Tax

In a desperate bid to recover Rs 9.42 crore, owed by alleged economic offender Nirav Modi as property tax, the BMC has written to the Enforcement Directorate seeking to be paid as soon as the agency auctions the three commercial properties of the elusive diamantaire.

A senior civic official said BMC has the first claim on the revenues from the auction of Modi’s assets. Property tax dues are public dues, he said, adding that the company had written to ED Joint Director Satyavrat Kumar for a payout.

The office space in Lower Parel’s Peninsular Corporate Park for which the dues are Rs 5.14 crore is one of Modi’s properties. BMC attached the property that the ED has already taken over on March 04.

“After a due process we have attached the property under BMC rule,” said Sharad Ughade, Municipal Commissioner, G-South Ward. The remaining two commercial buildings are in Kurla and BKC.

On March 04, the Bombay High Court refused to remain to auction many valuable paintings and luxury items seized from Modi’s residence by the ED. Paintings were then scheduled to be auctioned on 5 March.

The BMC has implemented stringent measures to counter property tax defaults to meet the goal of this financial year. The municipal body seized two airline-owned helicopters last week and disconnected the Wadhwa Trade Center’s water supply in Kalina.

Officials also disconnected the supply of water to different city-wide residential societies, including Sion, Matunga, Bandra, Andheri and Versova and announced that in the coming weeks they would intensify the operation.

On 4 March, the civic body also added an outstanding of Rs 1.75 crore property tax to a high-end car belonging to Ms Popatbhai Jamal in Prabhadevi.

The BMC began an awareness-raising drive last week, where drums were pounded in front of residential and business premises to remind citizens to pay their taxes. Officials used loudhailers to announce that the defaulters will face serious measures, including seizure and disconnection of household goods and properties.

Until 30 November 2019 approximately Rs 1,387 crore, which was just 25 per cent of the 2019-2020 cumulative Rs 5,016 crore, were collected in property tax. BMC officials reported that Rs 80 crore a day had been recovered and Rs 3,500 crore was collected before March 4.

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