Property Tax Defaulters To Pay Two Per Cent Penalty To PMC

PUNE: Starting October 2010, the Pune Municipal Corporation (PMC) will execute the state government’s notification to impose a two per cent penalty on property tax defaulters.

The state government on May 31, 2010, issued a notification, according to which the civic body has been authorised to impose a fine of two per cent every month if the property tax is not paid in the given period of time.

For the year 2010-11 property tax for the first six months has to be paid before September 30, 2010, and those who fail to pay it will have to pay a two per cent penalty on the tax amount every month till the tax is paid. The second instalment of the property tax has to be paid before December 31, 2010.

“The standing committee on Friday approved the proposal to impose a penalty. This will help the PMC to collect property tax on time and even citizens will respond positively to paying on time,” said standing committee chairman, Arvind Shinde while speaking to reporters.

In the last two years, the PMC has brought nearly 80,000 properties under its tax net. However, an estimated 45,000 properties still remain out of its reach. The standing committee has repeatedly told the administration to make an effort to widen its tax net. Once the unassessed properties come under the tax net, the civic body is expected to get an additional revenue of Rs 100 to 150 crore.

The PMC’s tax collection and assessment department has already submitted a plan to the standing committee. After octroi, property tax is a major source of revenue for the civic body. The department has proposed that digital pictures of all properties be taken for records and an aluminium plate be fixed on each property, identifying its survey number and other details.

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Pune Builders Want Land Norms On Par With Mumbai

The Confederation of Real Estate Developers’ Associations of India (Credai), Pune has made a representation to the Urban Development Department secretary, TC Benjamin, to make more land available by applying the same parameters of redevelopment for wadas and old city areas as the department has done in Mumbai.

Credai Pune launched a property exhibition at the Le Meridien hotel in he city on Friday. The exhibition will be on till Sunday. The projects offer one BHK to 5 BHK, penthouses, row houses, bunglow plots and offices in PMC, PCMC and surrounding areas.

Shantilal Kataria, vice president Credai, hopes the organisation’s proposal will be approved before Diwali as promised by the Mayor.

“Land prices currently are out of control, and are more than the prices at the peak in 2008. Short supply of land will lead to an upward pressure on prices, and therefore the builders are keen that land is made available soon so that affordability is not affected.” he says.

After having to tackle the lull in the market, it is the shortage of supply in land that developers have to address, highlighting the return of normalcy in the sector . Anuj Bhandari, exhibition committee chairman, Credai, declared that the Pune realty industry has returned to normalcy. “People are now keen on buying homes as the IT and manufacturing industries have started hiring and the economy is looking up with the GDP at a robust eight per cent. But stock of good quality homes is fast depleting,” he said.

The members however do not want to raise prices even as there is shortage.

Satish Magar, president, Credai, Pune, feels that past experience shows sales happening within a certain price band. While demand for ultra luxury homes remains, notwithstanding the general outlook, has people willing to buy in the 2,500/sq.ft- to 4,000/sq.ft price band. “If prices jump too high, demand shrinks significantly. The challenge for us is to maintain quality even as input costs keep rising,” says Magar.

Explaining the issue further, Rohit Gera, vice president, Credai added, “homes are built by established or serious players and also by the fly-by-night operators. A well established builder will ensure that the flats he builds meet all norms, legal, environmental and financial. But on account of very poor land availability, new projects are slow to launch even though demand has returned. So we have projects that are good and safe to buy and also those that are built by those who are in it to make a quick buck. As a result good quality homes are not as easy to find.” The Credai Mega Property exhibition has also banks ICICI and HDFC participating.

372 New Rickshaw Stands In Pune

PUNE: The traffic department has given a green signal to 372 new autorickshaw stands in the city, Manoj Patil, deputy commissioner of police (Traffic) announced.

According to Patil, the traffic department has planned a special drive against drivers plying rickshaws without meters. This drive will be carried out in Pune and Pimpri-Chinchwad during the next seven days.

“Many rickshaw drivers do not use meters. and charge exorbitant fare. So action has been planned against them,” he said.