MCD to seek no-dues rider for house sale

New Delhi: Sale and purchase of properties is likely to get difficult in Delhi.The Municipal Corporation of Delhi(MCD)is planning to introduce a new policy wherein property owners will be required to obtain a no-dues certificate,specially from the property tax departmentof the civic agency,before selling it.The MCD is planning to ask the Delhi government to make it mandatory to obtain a no-dues certificatefrom theMCD at the time of sale of property.Not only will this ensure that people are not fleeced by property owners at the time of sale of property,but will also help the cashstrapped MCD to improve revenue collection.
We will soon send a proposal to the Delhi government to make no-dues certificate from MCDs property tax department mandatory for sale or purchase of property in Delhi, said Yogender Chandolia,chairman,standing committee,MCD.The proposal is a part of Chandolias budget presentation for the year 2011-12.Sources said this is one of the many ways that MCD is considering to increase its revenue.Property tax is the main sourceof revenue for the MCD and if implemented,the proposal will help in boosting MCDs property tax collection.
According to Chandolia,Alarge number of people who have recently bought property in Delhi are unaware of outstanding property tax.There are several properties,which have an outstanding tax of more than Rs 5 lakh.After they are sold,the new owner has to clear the previous property tax.
MCD plans to collect aboutRs 1050crore as property tax in the current financial year.To meet its target,MCD has prepared alistof defaulterswhoowe MCD more than Rs 5 lakh.

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