Chennai Corporation to crack down on officials for failing to collect property taxes from Koyambedu traders

Chennai:
Chennai Corporation is planning to crackdown on officials for failing to collect property tax from the traders in Koyambedu market.

The city corporation says that only 472 traders owning shops in Koyambedu wholesale market are paying property taxes after Chennai Metropolitan Development Authority handed over the shops to the traders.

The mayor said that after CMDA handed over the shops to the traders, property taxes were calculated and an order was issued to 2,098 of the 3,194 shopkeeprs.

Interestingly, only 472 traders paid the property tax properly while not a penny was forthcoming from other shopkeepers.

But the failure lies with Chennai Corporation not assessing how much property tax 1,096 shops have to pay.

Mayor Saidai duraiswami said during a council meeting that the property tax has to be collected.

The blames lies with Chennai Corporation’s revenue department officials. They have yet to assess the property tax to be paid by the trader.

“As they have failed to assess the amount of property tax to be paid by the trader, an enquiry is being conducted in the department to ascertain why no effort has been taken to collect the property tax,” said Duraiswami during the corporation council meeting.
The mayor vowed to initiate action against the erring officials. “We are conducting an enquiry into the issue. Based on it, action will be taken against the erring officials,” he added.

He said that Chennai Corporation is working towards retrieving the outstanding property tax amount. “We are also planning to initiate legal actions to retrieve the property tax,” said Duraiswami.

He also said that there is no property tax waiver or reduction for commercial buildings located in corporation area.

Meanwhile, the mayor said that he would also initiate action against traders who are subletting their premises. “We will be confiscating their licence besides the shop will be locked and sealed,” he said.

The Koyambedu market is also plagued by other problems including some of the shops deviating from the original structure plan. Some are having their office as well as cold storage inside the shops. Interestingly, as per Chennai Metropolitan Development Authority’s rules it is illegal to have cold storage within the 8 km radius if the government owned cold storage is functioning there. “But nearly 40 to 50 cold storage are illegally functioning in the A and H block,” says an official on condition of anonymity.