CHENNAI: The Greater Chennai Corporation (GCC) has recently addressed a letter to the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) regarding the low property tax collection, which stood at only 80% in the last financial year. The GCC is seeking directions that would require banks and financial institutions to include pending property tax dues when recovering loans from borrowers.
To further enhance recovery rates, the GCC has also requested CERSAI to connect property tax defaults with CIBIL ratings and advise banks to deduct the owed amounts directly. GCC Commissioner G S Sameeran highlighted that there are about 90 significant defaulters who collectively owe ₹27.3 crores. “We aim to receive a directive for banks to recover these taxes through loan collections. While property tax is not categorized under loan liabilities and thus requires regulatory amendments, such a directive could facilitate recovery for GCC,” he stated.
In total, the GCC had a demand of ₹2,564 crores but managed to collect ₹2,043 crores during the year, marking a significant achievement. To increase recovery efforts, the civic body has publicly listed 90 major property tax defaulters, with outstanding second-half dues of ₹27.31 crores. So far, tax has been collected from 17 defaulters, with 28 properties locked and 11 seized.
Sameeran mentioned that they have recently sealed a property valued at ₹70 crores due to non-payment of dues. “We have no interference or localized pressure preventing us from acting on building deviations and violations, which is allowing officials to expedite the lock-and-seal processes,” he added.
