Madurai corporation suspends five bill collectors for property tax fraud

MADURAI: Madurai corporation has suspended five bill collectors for their involvement in a property tax fraud that has resulted in a revenue loss of Rs 1 crore over the past two years.
The officials in question were found guilty of illegally reducing property tax assessments for 150 buildings, leading to substantial financial losses for the corporation.
The suspension orders were issued by Madurai Corporation Commissioner C Dinesh Kumar on Saturday evening following an inquiry. The suspended bill collectors are K. Ramalingam from Ward 76 (Zone 3), P. Mariammal from Zone 5, P. Ravichandran from Ward 6 (Zone 1), M. Kannan from Ward 64 (Zone 2), and P. Aathimoolam from Ward 85 (Zone 4).
The fraud involved reducing property tax assessments without proper authorization, exploiting gaps in the oversight process. These officials altered assessments in exchange for bribes, bypassing the necessary approval procedures.
The corporation, which manages over 3 lakh properties across 100 wards, relies on periodic tax assessments conducted by revenue department officials. These assessments are recorded in the Urban Tree Information System (UTIS), the corporation’s online property tax management platform.
The fraud came to light when Commissioner Dinesh Kumar initiated weekly reviews of property tax assessments following reports of discrepancies. The review process uncovered irregularities, including missing entries for certain buildings in the tax records.
Further investigation revealed that taxes had been deliberately reduced by the bill collectors across five zones without following proper procedures.
In response, Commissioner Dinesh Kumar formed a special committee to audit tax assessments across all wards. The audit revealed that property taxes for 150 buildings had been illegally reduced, resulting in a cumulative loss of Rs 1 crore over two years.
The Commissioner emphasized the importance of stringent oversight to prevent such fraudulent activities in the future, with further audits and investigations planned to ensure transparency and accountability in the property tax system.