The civic body had seized Mesco Aerospace’s two helicopters in Feb last year after the firm failed to pay its tax dues despite repeated reminders
BMC plans to auction the two Mesco Aerospace helicopters in February
The Brihanmumbai Municipal Corporation (BMC) has managed to collect only 10 per cent of the targeted property tax for the year 2020-21 in view of the pandemic, but now it plans to auction the helicopters of Mesco Aerospace it seized in February last year to recover Rs 1.95 crore in tax.
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The civic body had seized the choppers after the company failed to pay its taxes after repeated notices. “The company’s dues were R1.65 crore till March 2019. The BMC cut the water supply to their office premises in 2019 and sent them a notice. The dues then touched almost R1.95 crore (till March 2020), so we seized the helicopters,” said a civic official. The civic body had given Mesco 21 days time to pay the dues.
Sangita Hasnale, assistant commissioner, tax assessment and collection department, said, “The auction process of the helicopters has started as we have received a go-ahead from the authorities concerned.” “Despite issuing notices to them, we haven’t received any reply from the company. Hence, the BMC has decided to auction the helicopters,” said Sunil Dhamne, deputy municipal commissioner.
Hasnale further said, “For the first time, last year the civic body started seizing movable items like furniture, cars and helicopters to recover dues. The corporation can auction these items if the defaulters fail to pay tax dues within the notice period.” She added that even if there is an ongoing dispute over the calculation of tax, the owner would still have to pay full tax based on the old method of ready reckoner and 50 per cent of the tax based on capital value. And if they fail to do so, then the corporation could still auction the movable assets.
Though the price of the helicopters has not been fixed yet, the BMC wants to auction them in February. Sources said that the civic body collected property tax worth Rs 293 crore in just five days after it seized the helicopters last year, as people started paying up soon after, but the collection before that was around R10 crore per day.
A BMC official said that the helicopters were seized under Schedule K of the Property Tax Act (before sealing the property of a defaulter, BMC can seize goods and articles). mid-day tried contacting Mesco Aerospace for comment but did not get a response. According to sources, the Director-General of Civil Aviation withdrew the company’s permit in September 2001 over alleged financial irregularities.
Rs 738 cr
Amount in property taxes the BMC has managed to collect till now
Rs 6,768 cr
Estimated target of tax the civic body aims to collect
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