Maharashtra Waives Penalty on Property Tax Arrears, Amends Local Governance

The Maharashtra cabinet approved waiving the two percent penalty on property tax arrears for various municipal areas. Additionally, new amendments will allow municipal bodies to remove their presidents and establish a uniform interest rate for land acquisition compensations, easing financial burdens.

The Maharashtra cabinet has made a significant move by approving a waiver on the monthly two percent penalty for property tax arrears within municipal councils, nagar panchayats, and industrial townships. This decision is driven by observations that penalties often surpass the original tax amounts, leading to delayed payments from property owners.

Besides addressing property tax penalties, the cabinet introduced amendments allowing municipal council members greater autonomy in governance. Previously, 50% of council members were needed to propose the removal of a president, a process requiring state intervention. The new amendment empowers two-thirds of elected members to submit signed proposals, prompting the district collector to organize a special voting session within ten days.

The cabinet also endorsed a legislative change to standardize the interest rate on delayed compensation for land acquisitions. By setting the rate at one percent above the prevailing bank repo rate, rather than 12%, 9%, or 15% under various conditions, the amendment aims to alleviate the financial strain on the state and cut project costs.

(With inputs from agencies.)