In a significant move aimed at empowering elected members and enhancing property management in the state, the Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, approved several key reforms in the governance of municipal corporations, municipal councils, and industrial cities. These decisions were made during a meeting held on Tuesday.
A major reform approved by the Cabinet allows elected members of municipal councils, municipal corporations, and industrial cities to have the authority to remove their respective presidents from office. Previously, the process of removing a president required signatures from at least 50% of elected members, after which the proposal was sent to the district collector, and action was then taken at the government level. Under the new rule, however, the proposal to remove a president must now be submitted by two-thirds of the elected members, and the district collector will have to organize a special session within 10 days to decide through voting. This change will be incorporated into the Maharashtra Municipalities, Municipal Councils, and Industrial Cities Act, 1965, and a corresponding ordinance will be issued.
Changes to Property Lease Rules for Municipalities and Corporations
In another significant decision, the Cabinet approved changes to the rules governing the leasing of properties owned by municipal corporations, municipal councils, and industrial cities. The government will issue new notifications regarding property lease rates to standardize and streamline the process. These changes are in line with the rules set for municipal corporation property leases, renewals, and transfers on November 6, 2023.
The revised regulations will bring uniformity in the transfer of properties across all local bodies in the state. According to the new guidelines, properties will be categorized for residential, educational, charitable, public, commercial, and industrial uses. The lease rates for residential, educational, charitable, and public properties will be no less than 0.5% of the current market value as per the Ready Reckoner, while commercial and industrial properties will have a minimum lease rate of 0.7% of the market value.
A five-member committee, chaired by the respective district collectors, will determine the value, lease rates, and security deposits for properties under these categories. A public consultation process will be initiated before the final notification is issued.
“Abhay Yojana” for Waiver of Property Tax Penalties
To address the issue of overdue property taxes, the Maharashtra Cabinet also approved the implementation of the “Abhay Yojana” (Amnesty Scheme). This initiative aims to waive penalties on outstanding property taxes for municipal corporations, municipal councils, and industrial cities. Currently, a penalty of 2% is levied each month on overdue property taxes, which often exceeds the principal tax amount, discouraging property owners from paying their dues.
The new scheme will allow property owners to clear their dues without the burden of excessive penalties. This provision will be incorporated into the existing laws, which previously did not include a mechanism for penalty waivers.
