Pune: Maharashtra Government’s Penalty Suspension: PMC Faces Potential Rs 500 Crore Loss

Pune, 12th March 2024: In anticipation of the upcoming Lok Sabha elections, the Maharashtra state government has temporarily suspended triple fines for illegal constructions in 34 villages now part of the Pune Municipal Corporation (PMC) and the 2% penalty per month on arrears. This move is expected to result in a loss of Rs 500 crores for the PMC, directly impacting ongoing development projects. Additionally, if this rule is extended to unauthorized constructions within the old limits of Pune City, the projected loss could rise to 4 thousand crores.

The government of Maharashtra has incorporated 34 villages into the PMC, with 11 added in 2017 and 21 in 2021. The expectation was that these villages would undergo planned development, with control over illegal constructions. However, the PMC has struggled to manage this effectively.

As the 11 villages have been part of the PMC for five years, they are subject to 100% taxation. In the remaining 23 villages, bills are currently being sent at a rate of 20% of the total bill. The Maharashtra Government’s decision to grant a reprieve will likely benefit voters in the Baramati and Shirur Lok Sabha constituencies.

Within the old limits of Pune city, there are 20,815 unauthorized buildings, mobile towers, and sheds, with an outstanding amount of 3,412 crores. In the 34 newly included villages, there are 2,384 unauthorized constructions, consisting of 2,079 buildings in 11 villages, incurring a penalty amount of Rs. 493 crores. Furthermore, there are 305 unauthorized buildings in 23 villages, with a penalty totalling Rs. 2.13 crores, as per the PMC administration.

The Maharashtra Government’s Cabinet meeting on Wednesday (13th) is likely to address the decision to waive three times the fine and penalty. While this move could yield political advantages for the government, concerns have been raised about who will bear the financial burden of the PMC’s losses.

Details for the 34 villages:

11 villages:

– Total property tax demand: 2080 crores
– Total deposits: 1090 crores
– Outstanding: 988 crores
– Total amount of penalty: 404 crores

23 villages:

– Total property tax demand: 401 crores
– Total deposits: 120 crores
– Outstanding: 291 crores
– Total amount of fine: 2.3 crores

MLA Sunil Tingre has suggested that the decision to waive fines and the 2% penalty for illegal construction in these 34 villages might be taken during the cabinet meeting. However, he emphasized the need for fairness, urging the state government to consider a decision aligned with the approach taken by the Pimpri Chinchwad Municipal Corporation.