In a major boost to its revenue, the Mormugao Municipal Council (MMC) on Thursday recovered a substantial amount of Rs 5 crore from Indian Oil Corporation Limited (IOCL), clearing a significant portion of long-pending outstanding dues that had remained unpaid for several years.
Speaking to reporters, MMC Chief Officer Siddhivinayak Naik said the recovery followed sustained follow-up, multiple meetings and firm action initiated by the civic body against defaulting agencies.
“Several State and Central government organisations operating within our jurisdiction owe taxes to the MMC. In the case of IOCL, a total arrears of Rs 8.5 crore had accumulated over many years,” Naik said.
He said the council had repeatedly taken up the issue with IOCL through meetings and written reminders, but payments were not forthcoming.
“We were intensively following up this matter for years. Eventually, we informed them that the MMC would initiate eviction proceedings under the relevant Acts, and that is when we moved into a serious mode,” Naik said.
According to Naik, IOCL representatives then approached the MMC for discussions.
“We provided them with all necessary clarifications to address their doubts and also escalated the matter to higher authorities. The Chief Secretary convened a meeting on this issue and issued clear directions. Following this, IOCL approached the MMC and cleared Rs 5 crore,” he said.
Naik said a balance amount of Rs 3.5 crore is still pending.
“They have raised concerns about the rate of interest being applied. However, we have made it clear that the rates and the calculation formula are government-approved. If they still have any contention, we will place it before the government. Our stand is very clear — everyone must be treated equally, and there cannot be different interest rates for different parties,” he said.
Emphasising revenue mobilisation, Naik said MMC is entitled to collect taxes from all Central and State government agencies operating within its limits.
“As per rules, organisations that are fully occupied must pay 75 percent of the applicable house tax, 50 percent if partially occupied, and 25 percent if unoccupied. Many such organisations are functioning at full capacity and are therefore liable to pay 75 percent,” he said.
Naik also pointed out operational challenges faced by municipal staff during inspections.
“Some organisations do not allow our staff to enter their premises. We are planning to approach the magistrate for appropriate orders to prevent any obstruction to our staff for calculating the area occupied and other inspection related activities.”
“I will personally visit sites along with the Accounting department officers and municipal engineers, to boost staff morale and ensure inspections are conducted properly,” he said, adding that strengthening revenue collection would ultimately help fill the municipal coffers and improve civic services.
