QUESTIONS BEING RAISED OVER COUNCILORS’ NOCs IN HOLDING TAX CASE

QUESTIONS BEING RAISED OVER COUNCILORS’ NOCs IN HOLDING TAX CASE

7-APRIL-ENG 11

RAJIV NAYAN AGRAWAL

ARA----------------------------The issue of holding tax has become the focal point of discussion these days in the Shahpur Nagar Panchayat of this district. Now, serious questions are being raised regarding the 'No Dues Certificates' (NOCs) obtained by the elected councilors of the Nagar Panchayat. This controversy primarily centers on the double standards adopted in the calculation of taxes and the issuance of NOCs in a manner contrary to established rules.

According to information obtained from an experienced tax collector within the Nagar Panchayat, during the civic body elections held in 2023, the building tax for the elected public representatives was calculated at a rate of merely 20 paise per square foot in the 'No Dues Certificates' issued to them. The most glaring anomaly in the issuance of these NOCs is that the area of ​​vacant land owned by the respective councilors was completely disregarded—a clear violation of the provisions of the Bihar Municipal (Amendment) Act, 2013.

A review of available departmental data reveals that the Nagar Panchayat is currently collecting residential building tax from ordinary citizens at a rate of ₹4 per square foot and commercial holding tax at ₹32 per square foot, in accordance with the rates effective since the Bihar Municipal (Amendment) Act, 2013. Furthermore, as per regulations, the total area of ​​vacant land is also required to be included within the tax ambit. Consequently, out of approximately 3,612 households in the town, holding tax amounting to approximately ₹51.50 lakh was collected from 1,500 households for the financial year 2025-26.

The glaring contradiction now lies in the fact that while the rules have been strictly enforced upon the general public, the elected public representatives have not only been exempted from these regulations but were also issued NOCs at exceptionally low rates during the election period. The most startling fact in this entire episode is that, at the time of the elections, not a single elected councilor paid the taxes due on their vacant land—despite the fact that, under the rules of the Bihar Municipality (Amendment) Bill, 2013, the payment of taxes on vacant land within a Nagar Panchayat area is mandatory. The local public and concerned citizens question how, if the rules apply equally to everyone, elected representatives managed to secure such a massive exemption regarding their tax obligations. This matter has now become a subject of intense discussion within the Shahpur Nagar Panchayat.

According to legal experts specializing in Panchayati and Municipal laws, this issue could assume serious proportions in the near future. Manoj Kumar Singh, an advocate at the Patna High Court, opines that if such irregularities are substantiated, they could create significant legal difficulties for the elected councilors. A case for disqualification, under Section 18(1) of the Bihar Municipal Act, can be made against those elected representatives who won their seats after obtaining a No Objection Certificate (NOC) without having cleared all their municipal tax dues. Currently, a total of five cases pertaining to the Shahpur Nagar Panchayat—all related to outstanding tax arrears—are pending before the State Election Commission (SEC) Court in Patna.