Maharashtra: In a move aimed at easing the financial burden on property owners and streamlining governance, the Maharashtra cabinet has given the green light to a new amnesty scheme that eliminates penalties on overdue property taxes. The initiative is applicable to properties situated in municipal councils, nagar panchayats, and industrial townships.
According to a release from the Chief Minister’s Office (CMO), numerous property owners had postponed tax payments due to the steep two percent monthly penalty, which, over time, often exceeded the principal tax amount. To alleviate this issue, the cabinet has agreed to completely waive the penalties. Necessary amendments will be made to relevant municipal laws to bring the scheme into effect.
In another significant development, the cabinet approved a revised mechanism for the removal of presidents of local governing bodies like municipal councils and nagar panchayats. Under the previous system, at least half of the council members had to submit a resolution to the district collector, who would then forward it to the state government for action.
The updated process now allows two-thirds of the elected members to submit a signed proposal directly. Upon receiving this, the district collector is required to convene a special meeting within ten days to carry out a vote on the matter. Since the legislature is not currently in session, this change will be implemented through an ordinance.
The cabinet also endorsed a new policy to bring uniformity to interest rates paid on delayed land acquisition compensation. The existing provisions under the Land Acquisition Act of 2013 mandate varying rates—9%, 12%, or 15%—which the government argues have contributed to increased project costs.
To resolve this, the state will now apply a standardized rate of interest, pegged at one percent above the Reserve Bank of India’s repo rate. This move aims to create predictability and reduce the financial impact on infrastructure development.
