Unpaid tax to be recorded on share certificates of flat owners: PCMC

In a bid to recover pending property taxes, the Pimpri Chinchwad Municipal Corporation (PCMC) is set to direct housing societies to record outstanding tax dues on share certificates of flat owners who have defaulted on payments. This move, however, has sparked criticism from both housing society members and activists.

Officials said the civic body will issue the order letters to housing societies on Tuesday, and defaulters will face restrictions, including disqualification from contesting or voting in society elections.

There are 6,644 housing societies under its jurisdiction, with 77,886 flat owners collectively owing ₹180 crore in unpaid property tax. Despite repeated notices, phone calls, and SMS reminders, many property owners have failed to clear their dues. In response, the civic body has instructed housing societies to enforce stricter measures to ensure compliance.

Housing societies issue share certificates to their members as proof of ownership. Now, PCMC has asked society chairpersons and secretaries to record outstanding tax amounts on these certificates. The move will make it difficult for defaulters to transfer ownership of their flats without settling their pending dues. Additionally, societies will not be able to issue a No Objection Certificate (NOC) for property transfers unless all property taxes are cleared.

Avinash Shinde, assistant commissioner, tax assessment and collection department, PCMC, said the civic body has the administrative power to record pending property tax dues on individual property holders and landowners.

“Similarly, we will ask housing societies to record tax dues on the share certificates of defaulting flat owners. PCMC has significant powers under the Maharashtra Municipal Corporation Act, 1949. Any taxpayer who fails to clear dues before December 2024 will be considered a defaulter and liable to pay a two per cent penalty,” he said.

As of March 31, 2025, a large number of defaulters include families, flat owners, and apartment residents. The tax collection department has already begun disconnecting water connections for independent houses and bungalows with pending dues. However, similar action is not feasible for flat owners in cooperative housing societies.

Shinde added, “For defaulters living in flats, the municipal corporation has decided to notify the presidents and secretaries of housing societies to record outstanding property tax dues on the share certificates of defaulting members. To avoid this action, flat owners must pay their dues within the next eight days. The information will also be shared with the registrar of cooperative housing societies.”

Vivek Velankar, civic activist, has criticized the decision, stating that PCMC lacks the legal authority to impose such measures.

“The civic body has the power to seal and auction properties of tax defaulters, and it should focus on that. PCMC should not involve housing societies in tax recovery—it is not their job. The corporation must use its legal powers to recover dues,” he said.

He further questioned the effectiveness of barring defaulters from society elections. “If someone is unwilling to pay property tax, why would they be interested in contesting society elections? Also, they wouldn’t approach PCMC for an NOC to file their nomination,” he added.

Suhas Patwardhan, chairman of the Maharashtra State Cooperative Federation, echoed similar concerns.

“While PCMC has the power to seal and auction properties, property tax dues have no direct link to housing society elections. However, citizens should pay the taxes they are liable for,” he said.

Pradeep Jambhale Patil, additional commissioner, PCMC, defended the move, stating that the civic body has been using multiple channels to urge property owners to clear dues.

“The tax collection department has already seized 1,052 non-residential, industrial, and mixed-use properties eligible for confiscation. Now, orders have been issued to record outstanding property tax dues on the share certificates of flat owners with pending payments. Property owners should take the initiative to clear their dues before this burden is recorded on their share certificates, ensuring their property records remain clean,” he said.