Nashik: NMC cracks down on rent arrears, confiscates shops and platforms

The Tax Department of Nashik Municipal Corporation (NMC) has formed six teams and started taking strict action for the recovery of about Rs 53 crores in arrears of rent on shops and platforms. NMC has confiscated 118 shops and 79 spaces, and the tenants have been served a final ultimatum to pay the dues; but after that, preparations are being made to take possession of these blocks and auction them.

To provide the local traders of Nashik with their rightful space to do their business, the Municipal Corporation has constructed about 2093 shops, apart from 851 platforms that have been provided for vegetable sellers. Monthly rent is charged for these shops and platforms.

However, in the year 2015, the Municipal Corporation increased the rent of the plots by 14 per cent and some of the tenants directly approached the court against this hike. As a result, the rent collection of the NMC was stuck in the court dispute. Eight years later, the court ruled in favour of the NMC. However, by this time the arrears from tenants have reached Rs 53 crores.

Due to a drastic fall in the income of the Municipal Corporation this year, the Tax Department has started the collection of dues from the tenants of the Municipal Corporation, while undertaking the campaign to collect the arrears of property tax and water bills.

Six teams have been formed for this purpose and those with arrears have been issued notices and given a deadline. This confiscation is documented and final notices have been issued to them. If the arrears are not paid by the end of March, these properties will be taken over and will be auctioned along with their contents. Notices have also been issued to those who have not yet paid the dues. The tax department said that further action will be taken only after seeing the response.