Jaipur Traders Allege Major Irregularities in UD Tax Assessment and Collection
Traders operating within the historic Walled City of Jaipur have raised serious allegations against a private firm contracted by the Jaipur Municipal Corporation (JMC) for urban development (UD) tax assessment and collection. On Thursday, shopkeepers at the prominent Chaura Rasta market voiced their frustration, claiming widespread irregularities that have caused significant distress among the business community.
Allegations of Incorrect Bills and Arbitrary Notices
The traders specifically accused M/s Sparrow Softech Pvt Ltd, the firm outsourced by JMC for UD tax operations, of issuing incorrect bills and arbitrary demand notices. They stated that tax assessments were conducted without proper surveys, leading to numerous errors. Anmol Pathak, the general secretary of the Chaura Rasta Vyapar Mandal, provided a detailed example of the problem.
"Several buildings in the walled city contain multiple shops that are separately registered," Pathak explained. "Despite this clear separation, notices demanding Rs 2–3 lakh are being issued based on the total area of the entire building. A shopkeeper operating from a modest 20 square yard shop neither earns that level of income nor falls under the applicable UD tax slab. This methodology is fundamentally flawed and unjust."
Historical Dues and Failed Redressal Mechanisms
Further compounding the issue, several shop owners reported receiving demand notices for tax dues dating back to 2007, even for shops that were constructed as recently as 2020. This practice appears to contravene the Rajasthan Municipal Act of 2009, which stipulates that demand notices or attachment warrants cannot be issued for dues older than three years.
The traders also expressed dissatisfaction with the grievance redressal camps organized by the JMC, stating that these efforts failed to provide immediate relief. Officials at these camps reportedly informed affected shopkeepers that their cases would be examined at a later date, offering no concrete solutions or timelines for resolution.
Legal Violations and Procedural Lapses
According to established rules, the proper procedure for UD tax collection mandates that a tax bill must be served first. A demand notice should only follow if the payment is not made within a 15-day period. The traders allege that M/s Sparrow Softech Pvt Ltd has been issuing notices in direct violation of these prescribed rules, bypassing the initial billing step and creating legal and financial confusion.
Official Response and Promised Resolution
In response to the mounting allegations and the threat of organized protests from the trader community, JMC Commissioner Gaurav Saini addressed the situation. He confirmed that officials have held discussions with the affected traders and are actively working to correct errors found in the issued notices.
"A detailed and comprehensive review is being carried out from the very beginning of this process," Commissioner Saini stated. "We are committed to resolving these discrepancies. It is estimated that it will take approximately 15 days to thoroughly examine and address all the issues raised by the Chaura Rasta market traders."
Implications and Trader Ultimatum
The traders have issued a clear warning: if their grievances regarding the UD tax irregularities are not addressed promptly and satisfactorily, they will launch formal protests. The situation highlights the challenges that can arise when municipal tax collection is outsourced to private entities and underscores the importance of transparency, accurate assessment, and adherence to legal frameworks in urban governance and revenue collection.
