Ranchi Municipal Corporation Intensifies Revenue Drive, Uncovers Major Property Tax Discrepancies
The Ranchi Municipal Corporation (RMC) has significantly accelerated its revenue collection efforts across all city wards, implementing stricter scrutiny of holding tax payments. This aggressive push forms a crucial part of the civic body's strategy to achieve its ambitious revenue target of Rs 100 crore for the current financial year.
Field Inspections Reveal Widespread Under-Assessment
The intensified revenue drive has already begun producing substantial results, with comprehensive field inspections exposing large-scale under-assessment and systematic misreporting of property details in numerous wards throughout Ranchi. Teams from the RMC revenue branch conducted meticulous physical verification of both commercial and residential properties, examining multiple critical factors that determine tax liability.
These inspections focused on verifying declared built-up area, nature of property usage, actual road width, basement utilization patterns, and rainwater harvesting provisions. The findings revealed a troubling pattern where multiple properties had been paying holding tax based on significantly lower areas than their actual measurements or had been incorrectly categorized to reduce their tax burden.
Specific Cases Highlight Significant Tax Gaps
In ward number 45, Srishti Hospital was discovered paying commercial holding tax for only 12,000 square feet, while physical measurements confirmed the actual commercial built-up area stood at 22,870 square feet. This represents a substantial discrepancy of 10,870 square feet that had not been properly assessed for taxation.
Similarly, in ward number 35, RSP House (operated by Ranjit & Company) was found paying tax for merely 6,160 square feet, whereas physical verification established that 24,491 square feet was actually under commercial use. These dramatic discrepancies highlight the scale of potential revenue loss for the municipal corporation.
Pattern of Irregularities Across Multiple Wards
Similar irregularities were detected across ward numbers 1, 5, 6, and 45, revealing a broader pattern of tax avoidance and misclassification. The inspections uncovered several concerning practices, including:
- Basements being utilized as godowns or rented out to banking institutions while being taxed at residential rates
- Hotels operating commercially but paying holding tax under residential categories
- Deliberate under-reporting of road width to qualify for lower tax slabs
- Long-operational holdings with pending tax dues accumulating over several years
Municipal Corporation Issues Stern Warning
In an official statement, the RMC clarified its position: "As part of the intensified revenue drive, physical verification revealed significant discrepancies in property area, usage, and applicable tax category. The tax collection agency has been directed to immediately correct these entries and recover all outstanding dues in strict accordance with the provisions of the Jharkhand Municipal Act."
The civic body issued a stern warning to property owners, emphasizing that those failing to voluntarily reassess changes in area or usage would face strict penal action. This includes potential fines, penalties, and legal proceedings to ensure compliance with municipal taxation regulations.
The RMC's comprehensive approach combines physical verification with data analysis to identify discrepancies, representing a significant shift toward more rigorous revenue collection practices. This initiative aims not only to meet financial targets but also to establish greater transparency and equity in the municipal taxation system across Ranchi.
