The City Corporation is unlikely to achieve the target of collecting Rs100 crore as revenue tax before March 31. According to sources at the corporation’s revenue department, the target may not be achieved as some major tax defaulters have got a high court stay from recovery proceedings and other penal action.
Firms like the Amrita Institute of Medical Science (AIMS), Rama Varma Club and Chennai Silks have already got a stay from recovery proceedings. Similarly, some other defaulters have also filed cases in court. The AIMS owes Rs15 crore to the civic body while Rama Varma Club and Chennai Silks have arrears of Rs45 lakh and Rs13 lakh respectively.
“Though we succeeded in identifying unauthorised buildings in the city and taking action against them, tax arrears could not be materialised due to the court’s intervention. In the AIMS case, even state government had sent a recommendation for a stay,” said a top official of the revenue department.
However, department authorities are hopeful of collecting more than Rs80 crore as tax revenue before the end of this fiscal. “Total collection so far is Rs79 crore. This is higher than what was received in the same period last year. If the defaulters had not approached the court, it would be much higher than Rs100 crore,” the source added.
Meanwhile, the second phase of the tax collection drive started in February last was getting a good response from the public.
Special collection counters are functioning in zonal offices and divisions. The official added that the local body has started issuing warrants to building owners who have not remitted tax so far. “Two special squads under the revenue department, assigned to identify unauthorised structures, will restart their works from April 1