North MCD to take action for non-payment of transfer duty
The North Delhi Municipal Corporation, which is facing acute shortage of money, has decided to initiate action against major commercial properties in its area for not paying transfer duty. The Corporation has informed of identifying more than 125 big commercial complexes in its area.
North MCD Commissioner Praveen Gupta on Friday informed that commercial complexes were surveyed in its jurisdiction and in almost all cases, the due transfer duty had not been paid, causing huge financial loss to the Corporation. Following which, several teams have been formed to take necessary action under the DMC Act, to recover all dues of transfer duty/ stamp duty. The survey was conducted in areas of Gulabi Bagh, New Sabzi Mandi, Netaji Subjash Place, Paschim Vihar, Pitam Pura, Rohini Sector-3, Sector-11, Rani Bagh among other.
Gupta said that it has been noticed that some builders have made a practice of selling commercial units without paying the stamp duty. “Transfer duty is levied in the form of surcharge on stamp duty at the rate not exceeding 5 per cent of the amount specified under Section 147 (2) (b) of the DMC Act. The transfer duty or surcharge of stamp duty on transfer of property has been fixed at 3 per cent for men and 2 per cent for women of the amount specified under Section 147 (2) (b) of the Act,” said the Commissioner.
As per the act, transfer duty must be paid in cases of sale of immovable properties and also for any contract for transfer of immovable properties. Earlier, in a stern action against the defaulters, North MCD attached and took possession of more than 350 properties in the financial year 2015-16 and more than 80 properties in the current financial year.
“All such builders, promoters and individuals are advised to duly pay the tax due to the Corporation. The tax collected contributes to the development and provision of civic services. If due tax is not paid to the Corporation, stern action would have to be initiated against defaulters for which dedicated teams have already been constituted,” added the Commissioner.