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Property tax: What Are the Consequences of Unpaid in Hyderabad?

Property tax: What Are the Consequences of Unpaid  in Hyderabad?

A house belonging to J. Jayalalithaa has been sealed due to unpaid property tax dues totaling ₹82.91 lakh, highlighting issues with tax compliance.

A house belonging to the late J. Jayalalithaa has been sealed by the Greater Hyderabad Municipal Corporation (GHMC) due to unpaid property tax dues that have accumulated to approximately ₹82.91 lakh. This amount is a result of tax obligations that have remained unpaid since 2017.

The total property tax dues initially reached ₹1.6 crore before any waivers were applied. Following the implementation of the One-Time Settlement scheme, which offers a 90% waiver on accumulated interest for property tax arrears, the total payable amount was reduced to around ₹83 lakh.

The property, categorized as ‘Commercial’, has been rented by businessman Vijay Mallya, yet it remains registered under Jayalalithaa’s name in the GHMC records. Despite the heirs of Jayalalithaa being declared as her legal heirs in May 2020, no payments have been made towards the outstanding dues.

In response to the non-payment, the GHMC issued a ‘Red Notice’ indicating the seriousness of the situation. The outstanding dues now stand at ₹82.91 lakh after rebates under the One-Time Settlement scheme, which aims to encourage compliance among property owners.

The property will remain under the custody of the GHMC until the outstanding dues are cleared. This case underscores the challenges faced by local authorities in recovering property tax dues, especially when high-profile individuals are involved.

Observers note that the GHMC has made repeated efforts to recover the dues, yet these attempts have not resulted in any payments. The situation raises questions about the effectiveness of current tax recovery strategies and the implications for property tax compliance in the region.

As the situation develops, it remains to be seen whether the legal heirs will take action to resolve the outstanding dues or if further measures will be implemented by the GHMC to recover the owed amount. Details remain unconfirmed.

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