Pune: PMC’s Property Auction Stalls Over Commission Dispute
Pune Municipal Corporation Launches ‘Rangyatra’ App For Online Booking Of Cultural Centers
The Pune Municipal Corporation’s (PMC) plan to auction 2,600 properties due to unpaid property taxes has hit a roadblock after the private auctioneer handling the process demanded a 2.50% commission on each transaction.
According to PMC officials, properties not involved in legal disputes were sealed at the start of the auction. Out of these, 2,000 properties were to be auctioned to recover ₹200 crore in tax arrears. The PMC initiated the process in December 2024, targeting the recovery of ₹11,000 crore in outstanding property taxes.
The PMC is now exploring options to enlist a government entity or individual auctioneer who can conduct the auction at a fixed rate. The civic body has also uploaded a list of properties slated for auction as per the BPMC Act.
For the financial year 2024-25, the PMC projected property tax revenue of ₹2,800 crore, including contributions from 34 newly merged villages. However, with just two months remaining in the fiscal year, only ₹2,000 crore has been collected. To bridge the shortfall, PMC has intensified recovery efforts, aiming to collect ₹600 crore within the next 60 days.
Among the major defaulters is Sinhagad Educational Institute, which owes ₹18 crore in property tax. Despite sealing its office two months ago, the dues remain unpaid, prompting the PMC to proceed with auctioning the institute’s properties.
Additionally, the recovery of ₹3,500 crore in pending property tax from mobile towers remains a challenge. The PMC identified 3,000 towers in a survey conducted two years ago, with 1,600 operating illegally within the city. The civic body is facing resistance from telecom operators and directives from the state government to hold off on enforcement until legal matters are resolved.
