Chennai: The XV Metropolitan Magistrate Court, George Town, Chennai has ordered the police to probe corporation officials for fraudulently reducing the property tax slab of commercial buildings to benefit building owners. Senior civil judge P. Eswaramurthi has ordered the investigation based on a DC story, “DC Expose: Greater Chennai Corporation staff help property owners avoid crores”.
On June 7, 2016, DC exposed a few revenue officials engaged in irregularities and reduced the property tax slab for commercial buildings for the of benefit private property owners. The Corporation lost revenue of several crores. The errant revenue staff used to target buildings like hospitals, mansions, hotels, commercial multiplexes and marriage halls and help these building owners to get their taxes reduced.
Chennai corporation adopts many technical parameters while assessing taxes and tax slabs for buildings under different categories enabling the staff to manipulate the same.
The tax of a hospital had been calculated using its bed strength, however the bed strength often under assessed. The building owners declare the properties as self-occupied, but they rent it out for commercial purposes.
DC had written about a property classification changing and different arrear slabs being showed. Citing the DC story, J P Nagabushanam, former corporation employee, sent several representations to the corporation. Nagabushanam also enclosed a story published in a Tamil daily.
He contended that a section of revenue officials reduced the property tax from Rs 3 per sq ft to Rs 1 per sq ft by converting the non-residential buildings into residential structures. Besides this, the officials modified the tax provisions when writ petitions regarding this were pending before the Madras high court.
Nagabushanam alleged that the officials committed a crime punishable under section 166 and 212 IPC.
When the matter came up for hearing before the XV Metropolitan Magistrate Court, senior civil judge P. Eswaramurthi, said the complaint lodged against officials for alleged violation about the fixation of commercial taxes in Zone-5 of the Corporation. On perusal of the complaint, where there is a prima facie some violation as alleged by the complainant, Old Washermenpet Police was asked to investigate and submit a report before the court.
