Kolkata Municipal Corporation to Resume Auction of Properties in Long-Term Tax Arrears with New Transparency Measures

Kolkata Municipal Corporation to Resume Auction of Properties in Long-Term Tax Arrears with New Transparency Measures

Baby Chakraborty, KalimNews, Kolkata, April 18, 2025  :  The Kolkata Municipal Corporation (KMC) has announced a renewed initiative to auction properties that have been in long-term arrears of property tax, marking a significant move to enforce tax compliance and improve revenue collection. While the rule allowing such auctions has existed for years under the Kolkata Municipal Act, legal hurdles had prevented its effective implementation—until now.


Municipal officials clarified that this extreme measure will be taken only in cases where property owners have failed to clear dues despite repeated notices and warnings. According to the provisions of Sections 221A and 221B of the Kolkata Municipal Act, 1980, the Corporation is empowered to seize and auction properties with unpaid taxes, following proper procedures.

To ensure transparency and credibility in the auction process, the KMC has now roped in 11 government-approved valuer or chartered surveyor companies. These firms will be responsible for independently assessing the properties in default. They will determine both the ‘sale price’ and the ‘reserve price’—the minimum acceptable bid—based on property condition, legal status, market trends, and other relevant factors.

Authorities will invite tenders from the empanelled companies for each valuation task, and the selected firm will be officially appointed. This move is expected to both expedite and streamline the process, while minimizing the scope for disputes or irregularities.

A notable feature of the new protocol is that the valuation will be documented in a standardized format. The report will include detailed property descriptions, current condition, structural design and layout, photographs, analysis of prevailing market trends in the area, and a formal valuation certificate. This document can also serve as admissible evidence in court in case of any future legal disputes over the auction.

Furthermore, if any of the empanelled valuation firms are required to testify in court regarding their reports, they must do so without charging any additional fee—another step toward ensuring impartiality and public accountability.

With these measures in place, the Kolkata Municipal Corporation hopes to send a clear message about the importance of tax compliance, while ensuring that due process and fairness are upheld throughout. The renewed effort is not just about enforcement, but also about restoring confidence in civic governance and fiscal discipline.

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