Odisha's Premier Educational Institutions Face Property Sealing Threat Over Massive Tax Dues
In a significant development that has raised eyebrows across Odisha's academic and administrative circles, two of the state's most prestigious government-run educational institutions have been identified as major holding tax defaulters by the Bhubaneswar Municipal Corporation. The Odisha University of Technology and Research, the state's premier engineering university, owes a staggering Rs 4 crore in pending holding tax, while the highly sought-after BJB College has accumulated dues of Rs 3.5 crore.
Municipal Corporation Takes Aggressive Stance on Tax Collection
The revelation came to light as the Bhubaneswar Municipal Corporation released its comprehensive list of defaulters ahead of the financial year-end. BMC officials have issued a stern warning that properties of these institutions will be sealed if the substantial dues are not cleared promptly. This warning carries significant weight, as the civic body has already sealed over 100 institutions during the current financial year as part of its aggressive tax collection drive.
"From every ward, we listed 50 defaulters, and the respective list is available with the zonal deputy commissioner concerned for collection and necessary action," stated BMC deputy commissioner Suryamani Pattajoshi. "OUTR and BJB College are among the top defaulters, with Rs 4 crore and Rs 3.5 crore pending against them. We raised the demand and are in touch with the institution authorities."
Understanding Holding Tax and Its Calculation
Holding tax represents a crucial component of municipal revenue, calculated based on the plinth area of buildings. The tax assessment varies significantly, with different slabs applying to commercial and residential structures. Educational institutions, government establishments, commercial entities, and residential properties all pay holding tax annually based on assessments conducted by the civic body. The BMC filtered its defaulters' list from the total number of assessed holdings, identifying institutions with substantial current dues as well as those with both arrears and current obligations.
BMC officials emphasized that no institution, whether government-run or private, can evade paying holding tax, as the regulations apply uniformly to all property owners. "Holding tax can be reassessed if the institution is not satisfied with our calculation, but it cannot be exempted," clarified deputy commissioner Pattajoshi, highlighting the non-negotiable nature of the tax obligation.
Institutional Responses and Financial Challenges
The responses from the affected institutions reveal complex financial and administrative challenges. BJB College principal Jhumki Rath acknowledged the substantial pendency spanning several years and explained that the college lacks sufficient funds to address the holding tax issue independently. "The college does not have a big fund to address the holding tax issue," Rath told media. "We took up the issue with the higher education department. Based on their advice, we will proceed." The college has forwarded the tax demand letter to the higher education department for guidance and potential intervention.
Meanwhile, OUTR vice-chancellor Bibhuti Biswal provided additional context regarding his institution's efforts to address the tax liability. "We paid Rs 1 crore of tax last year and another Rs 1.5 crore three days ago, but there are still pending dues," Biswal explained. The university has requested the BMC to reassess the tax calculation and provide clarification on the basis of assessment. "We urged the BMC to reassess the tax. Also, we asked them to guide us on what basis the tax is calculated," he added, indicating potential disagreements over the assessment methodology.
Broader Implications for Municipal Governance
This situation highlights the ongoing challenges municipal corporations face in tax collection from prominent institutions, even those operated by the government itself. The substantial dues from two of Odisha's most respected educational establishments underscore the tension between institutional financial constraints and municipal revenue requirements. As the financial year approaches its conclusion, the BMC's aggressive stance signals a determined effort to improve tax compliance across all sectors, setting a precedent for how similar cases might be handled in the future.
The outcome of this standoff will likely influence municipal-institutional relationships across Odisha and potentially serve as a case study for other urban local bodies grappling with similar tax collection challenges from government-run entities.
