Pune Municipal Corporation (PMC) plans to impose a ₹5,000 administrative charge on every cheque issued for property tax that is dishonoured because of insufficient funds, after bounced payments delayed the recovery of outstanding dues. The proposal is intended to discourage defaulters from using cheques to postpone recovery action.
During the first six months of the 2026-27 financial year, the PMC property tax department issued notices in 2,150 cases involving dishonoured cheques. Property tax dues worth ₹18 crore were pending in these cases, according to information provided by the civic administration.
The administration said that some property owners paid their dues after receiving notices, while several others ignored them. In 440 cases, property tax dues amounting to ₹10 crore remain unpaid. The PMC is now preparing to submit a proposal seeking approval to recover the additional charge from defaulters whose cheques bounce.
The civic body has been directed to examine the applicable legal and administrative provisions before placing the proposal for approval. It is also considering whether the ₹5,000 charge can be shown separately on the defaulter’s property tax bill for the following financial year.
PMC officials have said that some defaulters allegedly issue cheques to avoid or delay measures such as property seizure and legal proceedings. The cheques are subsequently dishonoured because of insufficient funds, extending the time required for the civic administration to recover the original tax dues.
The PMC currently uses several measures to recover outstanding property tax, including issuing notices, seizing properties and initiating legal proceedings. However, despite the number of dishonoured-cheque cases, no criminal complaint has been registered so far over such payments, according to the information provided by the civic administration.
The proposed charge would apply in addition to the outstanding property tax liability if it receives approval. The civic administration is examining how the amount can be recovered and recorded in the property tax system before seeking a final decision.
The proposal comes as the PMC’s total outstanding property tax dues have crossed ₹15,000 crore, increasing pressure on the municipal corporation to strengthen its recovery mechanism. The next step is the submission of the proposal after the relevant legal and administrative provisions have been reviewed.
