NMC seized bank accounts of 2,497 traders to recover LBT dues of Rs 286 cr

Nagpur: The Nagpur Municipal Corporation (NMC) has seized the bank accounts of around 2,497 traders of the city to recover around Rs 286.02 crore of local body tax arrears (LBT).

According to Deputy Municipal Commissioner Milind Meshram, the Nagpur Municipal Corporation has also started the process of confiscation of properties of around 1,010 traders. Those who have defaulted local body tax arrears of about Rs 239.82 crore by issuing revenue recovery certificates.

The state government had completely abolished local body tax arrears in August 2015. But arrears assessment and recovery of arrears were not canceled at all.

Under Milind’s leadership, the department continued to collect data from the Department of Sales Tax and evaluate each of the eligible dealers for the financial years 2013-14, 2014-15, and 2015-16.

Milind said, Nagpur Municipal Corporation has prepared the data of bank account numbers submitted by all these traders. Accordingly, Nagpur Municipal Corporation has approached more than 70 different banks requesting for confiscation of all these accounts, According to the data received from the sales tax department.

Bank Accounts Attached

The department has attached all these accounts in the last one month. The official also said that the Nagpur Municipal Corporation had also given the defaulters every opportunity available under the rules to clear the dues.

He has further stated that if the amount is not recovered very soon, Then the process of confiscation and auction of properties will also be started for recovery of dues. Only about 442 traders have cleared their dues which is around Rs 1.41 crore. And as a last resort, Nagpur Municipal Corporation has attached the bank accounts of about 2,497 merchants.

Milind has also claimed that none of the traders have responded to the Nagpur Municipal Corporation notice or objected to the department’s assessment.

During scrutiny of the documents of all these, it has been found by the local body tax arrears department that about 1,010 merchants had not submitted the bank account details at all and the dues of those traders had reached Rs 239.82 crore.

Right now the department of local body tax arrears has submitted a revenue recovery certificate to each of the Assistant Commissioners to proceed for auction and confiscation of properties for recovery of dues from 1,010 dealers.

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