SPECIAL CORRESPONDENT v.g’ HYDERABAD:
A massive property tax evasion and assessment scam has come to light in the Saroornagar Circle of the Malkajgiri Municipal Corporation (MMC) under the LB Nagar Zone. Investigative reports and local whistleblowers allege a well-entrenched nexus between high-ranking municipal revenue officials and commercial property owners, which has reportedly caused a loss of crores of rupees to the municipal exchequer.
Despite explicit documentary evidence pointing towards gross financial irregularities by Deputy Commissioner Bonagiri Srinivas and Tax Officer Baburao, higher authorities, including the Metropolitan Three Corporations Tax Officer Radhika Gupta, IAS, have drawn flak for their perceived inaction.
The Modus Operandi: Manipulation of Re-assessments
According to official sources, the scam operates under the guise of commercial ‘re-assessments’ and the fraudulent granting of ‘vacancy remissions’. Statutory rules mandate periodic re-assessment of major commercial spaces based on current market utilization. However, field officials have allegedly suppressed physical realities, deliberately understating tax liabilities and past arrears in exchange for kickbacks.
Case Studies of Tax Evasion:
Prajay Princeton Towers (Case 1):* For the property registered under Door No: 11-15-14/1/PP (PTIN: 1031123514), the annual designated tax was determined to be ₹7,21,074. However, through unauthorized remissions, the system currently reflects a mere ₹1,54,598 for the financial year 2025-26, causing a direct loss of ₹12,87,550 to the corporation.
- Prajay Princeton Towers (Case 2): Another section of the same complex under Door No: 11-15-14/1/PPT/3F,4F (PTIN: 1031123110) holds an annual tax demand of ₹30,73,044. Alarmingly, the official records show an outstanding balance of just ₹2,98,638. Citizens allege a brazen loot of ₹58,47,450 in this single instance.
Konark Theater opp Commercial Complex Overlooked*
Further compounding the allegations, a five-story commercial complex situated directly opposite the local Conark Theater has escaped tax revision for the last two years. Despite functioning at full commercial capacity, revenue inspectors have systematically avoided updating its assessment, indicating a significant administrative lapse.
Unrealistic and Nominal Assessments
In several other instances, massive commercial structures have been assessed at inexplicably low rates. For example, Door No: 13-9-11/NR pays an annual property tax of just ₹1,300, while Door No: 13-9-12/NR is charged ₹43,478. These figures completely contradict the physical size and commercial usage of the prime properties.
Public Outcry and Demand for ACB Probe
While middle-class citizens and small-scale traders face stringent enforcement and penalties for minor delays in tax payments, wealthy commercial property owners are allegedly being handed massive illicit concessions.
Civic bodies and public welfare associations have expressed strong resentment over the silence of top bureaucrats. They have demanded that rather than conducting a superficial internal inquiry, the state government must immediately transfer the case to the Anti-Corruption Bureau (ACB) and the Vigilance & Enforcement Directorate for an independent, time-bound criminal investigation.
