Maharashtra Government has released the share of municipal corporation towards stamp duty wherein Nagpur Municipal Corporation (NMC) received a paltry Rs 4.23 crore. Urban Development Department (UDD) has ordered the release of third instalment from the consolidated 1 per cent surcharge levied on property transactions within properties in municipal corporations jurisdiction. A total of Rs 79,28,01,191 was allocated among 26 corporations in the State in varied sums. A notification issued by the UDD, on December 2, mentioned that District Collectors have been instructed to credit the amount in local bodies’ account within a period of 10 days. At the same time, it is directed that no deduction should be done from the amount that is to be provided to municipalities. The allocation of 1 per cent share is also indicative as to which way the realty market is moving in the State, and excluding Mumbai, Pune and surrounding towns get the thumbs-up. Now, it is said that one can find representation of all districts of Maharashtra within Pune district where urbanisation is outpacing other regions.

 

As usual, Pune Municipal Corporation has got the highest share, that of Rs 26,17,42,481 among all the 26 corporations. They are followed by neighbouring Pimpri-Chinchwad which is going to receive Rs 7,63,30,531. Means the two top earning municipal corporation within one district, that is Pune, has got nearly 42.64 per cent revenue from the 1 per cent realty surcharge released by State Government. Form the 26, about 10 municipal corporations have received their share above Rs one crore. Thane Municipal Corporation has got Rs 8,26,03,786 and they are second highest in getting the share and next is Nasik with Rs 5,23,38,246.

 

The amount is that way not very big considering the stature of the corporations many of which are struggling with funds due to strain of 7th pay commission as outgo on salaries and pension has increased the load. On previous two occasion, the UDD had similarly provided the funds to the corporations. After abolition of Octroi and subsuming of Local Body Tax (LBT) in Goods and Service Tax, municipal corporations are deprived of hard revenue. With depletion of sure shot revenue sources, Maharashtra Government decided to compensate them through imposition of 1 per cent surcharge on property transactions.