The financial crisis has its roots in an Oct 2024 decision by state govt to halt tax recovery in the 32 merged areas
The financial crisis has its roots in an Oct 2024 decision by state govt to halt tax recovery in the 32 merged areas, along with a directive that civic taxes should not exceed twice the rates previously charged by gram panchayats. Of the total outstanding amount, Rs 1,650 crore is the principal tax due, while accumulated interest has swelled the bill by another Rs 850 crore. “The recovery is delayed due to a policy deadlock.
PMC is not able to provide adequate facilities for these areas, so charging heavy property tax is not justified,” Sule said. The arrears have accumulated over nearly a decade across two phases of municipal expansion, according to PMC officials. State govt has put brakes on the recovery, leading to an increasing tax burden,” a senior PMC official said. The official said PMC had followed due process while introducing property taxes in the merged areas. As per the law, regular municipal rates were implemented after that period,” the official said. We are struggling to get even basic facilities like drinking water,” Shrirang Chavan, a resident of one of the merged localities, said.
Politicians, keen to protect suburban vote banks, have strongly opposed tax collection efforts, creating a policy deadlock that has crippled revenue recovery. The issue came up during a meeting convened by Baramati MP and NCP (SP) member Supriya Sule recently. “The administration and state govt had promised to provide tax relief to these areas. It should be continued. “Discounted tax rates were levied for nearly five years. Residents of the merged areas, however, argued that they should not be charged full municipal rates without receiving corresponding civic amenities. “Years have passed since our areas were merged into PMC limits, but civic infrastructure has not improved.