Five bill collectors suspended for deflating tax assessments

Madurai: Madurai corporation has suspended five bill collectors for their involvement in a property tax fraud by illegally deflating tax assessments for 150 buildings that resulted in a revenue loss of 1 crore for the civic body over the past two years.
Corporation commissioner C Dinesh Kumar, in an order on Saturday evening, suspended K Ramalingam (ward 76 in zone 3), P Mariammal (zone 5), P Ravichandran (ward 6 in zone 1), M Kannan (ward 64 in zone 2), and P Aathimoolam (ward 85 in zone 4).
The corporation collects property tax for more than three lakh buildings, from residential houses to commercial complexes and shops, in 100 wards. Tax assessments for these buildings are conducted every six months by the revenue department. Bill collectors inspect new constructions and update tax assessments in the Urban Tree Information System (UTIS), the corporation’s software for property tax management.
However, a lack of stringent oversight allowed some bill collectors to exploit the system by reducing property tax assessments in exchange for bribes. The issue came to light after commissioner Kumar, acting on reports of discrepancies, initiated weekly reviews of property tax assessments. These reviews, which involved deputy commissioners, assistant commissioners from the revenue department, and bill collectors, revealed significant irregularities in the assessments of many buildings.
In response to these findings, the commissioner formed a special committee led by two assistant commissioners to conduct a thorough audit of property tax assessments in all 100 wards. The audit revealed that property taxes were illegally reduced for 150 buildings, resulting in an estimated revenue loss of 1 crore over the past two years.
Corporation officials explained that the UTIS software requires multiple layers of approval for assessments, including verification by junior assistants, assistant revenue officers, and an assistant commissioner. In cases where tax reductions are necessary, adjustments can only be made through a court order or a resolution by the corporation council. However, the suspended bill collectors bypassed these procedures. The commissioner assured to take steps to prevent such frauds from occurring in the future.