Synopsis
The Maharashtra Cabinet, under Chief Minister Devendra Fadnavis, has approved amendments to empower members to remove presidents of Municipal Councils, Municipal Panchayats, and Industrial Towns. The new rules also include leasing regulations for municipal properties and the introduction of the Abhay Yojana for waiving property tax penalties.Key Takeaways
- The Maharashtra Cabinet approved amendments to empower local members.
- The removal process for council presidents has been simplified.
- Leasing rules for municipal properties have been standardized.
- The Abhay Yojana waives penalties on property tax dues.
- New lease rates are established for various property types.
Mumbai, April 15 (NationPress) The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, has given its nod to amendments in the Maharashtra Municipal Councils, Municipal Panchayats and Industrial Towns Act, 1965. These amendments grant the authority to the members to remove the presidents of Municipal Councils, Municipal Panchayats, and Industrial Towns.
As the state legislature is currently not in session, the government will issue an ordinance to implement this.
Previously, to remove a president from office, a proposal with the signatures of fifty percent of elected members needed to be submitted to the District Collector. Now, the procedure has been simplified, allowing elected officials to directly initiate the removal.
Under the new rules, a proposal signed by two-thirds of the elected members will be submitted, and the District Collector must convene a special meeting within ten days to decide through voting.
Additionally, the Cabinet has also harmonized the regulations concerning the leasing of municipal corporation properties, as well as those in municipal councils and industrial towns. A notification regarding new rates will be issued, and rules established on November 6, 2023, will guide the leasing, renewal, and transfer of immovable property across the state's municipal corporations.
This new framework aims to standardize property transfers in all urban local bodies throughout the state. The Maharashtra Municipal Councils, Nagar Panchayats, and Industrial Towns (Transfer of Immovable Property) (Amendment) Rules 2025 will be developed in line with the Municipal Property Transfer Rules. The properties will be categorized as residential, educational, charitable, public, commercial, and industrial.
According to the updated regulations, the lease rate for residential, educational, charitable, and public properties will be set at no less than 0.5 percent of the current market value. For commercial and industrial properties, the lease rate will be less than 0.7 percent of the market value. A five-member committee, led by the District Collector, will determine the valuation, lease rate, and security deposits for these properties. Suggestions and objections regarding these new rules will be invited before the final notification is issued.
Moreover, the Cabinet has also approved the Abhay Yojana for property tax dues in Municipal Council, Nagar Panchayat, and Industrial Township areas, which includes waiving penalties. According to government sources, a penalty of 2 percent per month is currently imposed on property tax arrears, causing the total dues to increase and often exceed the original tax amount. This leads to property holders being hesitant to pay their taxes.
To address this issue, the Abhay Yojana will be implemented to waive penalties on property tax arrears, a provision that was not included in the previous Act. The Cabinet has approved this amendment.
