Pune: Residents of 34 villages recently included in the Pune Municipal Corporation (PMC) are facing uncertainty over property tax arrears and penalties for unauthorized constructions, with no final decision from the state government six months after an initial suspension.

Despite the freeze, the PMC has begun contacting villagers to recover pending amounts, causing unrest in the area.

In the 2017 and 2021 expansions, a total of 34 villages were added to PMC's jurisdiction, leading to a new wave of tax assessments. Residents, who were used to paying lower taxes under the Gram Panchayat system, found themselves facing significantly higher property taxes.

Moreover, a threefold penalty was imposed on unauthorized constructions such as sheds and warehouses, leading to arrears amounting to lakhs of rupees for many property owners. Owners of large commercial properties like showrooms and warehouses have been particularly affected by the penalties.

Residents had expressed their dissatisfaction with the increased taxes and penalties ahead of the Lok Sabha elections earlier this year, bringing their concerns to Deputy Chief Minister Ajit Pawar.

The state government responded by suspending the recovery of arrears and penalties, pending further review. However, no resolution has been made on whether these taxes will be reduced or if penalties will be waived.

Growing Pressure from the PMC

The PMC has collected ₹316.88 crore in property taxes this year, but outstanding dues have reached a staggering ₹1,783 crore. The freeze on the recovery of penalties and arrears initially provided temporary relief, but recent messages from the PMC urging residents to pay their outstanding amounts have reignited concerns.

With the Assembly elections fast approaching, and the 34 villages falling under the Baramati and Shirur constituencies, the state government has been under pressure to resolve the issue. The freeze was implemented to avoid voter dissatisfaction during the Lok Sabha elections, but no final decision has been made, and arrears continue to accumulate in the PMC’s records.

Awaiting Final Decision

The state government’s Urban Development Department has communicated to the PMC that the collection of penalties for unauthorized constructions and the 2% late fee on outstanding property taxes has been suspended until further orders.

However, with no final decision from the state, uncertainty continues to loom over the residents, while the PMC struggles to meet its property tax collection targets for the year.