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The Madras High Court has ordered a citywide audit of property tax assessments in Madurai following a public interest litigation (PIL) that has exposed a massive INR 200 crore property tax scam. The court has also directed the formation of special teams to verify the correctness of all assessments. This action comes, as a Special Investigation Team (SIT) is already probing the scam, which allegedly involves the undervaluation of properties by officials, political figures, and the manipulation of the online tax system.
A comprehensive audit of all property tax assessments has been ordered by the Madurai Bench of the Madras High Court, which is demanding a clear action plan for its execution. The directive was issued to the Madurai district collector and the city's corporation commissioner, as the court takes a firm stance on a widespread property tax scam. Their efforts are to coordinate to verify the accuracy of all 349,741 property tax assessments within city limits. Advertisement
The court's intervention follows a public interest litigation (PIL) filed by AIADMK councillor T. Ravi, who alleged that the scam, which occurred between 2022 and 2024, has caused a massive revenue loss of over INR 200 crore. The fraud was carried out by manipulating the city's online tax system, the Urban Tree Information System (UTIS), to artificially reduce tax liabilities. This was allegedly achieved through methods such as showing lesser built-up areas, misclassifying commercial buildings as residential, and deleting records of rooms from the tax server.
A Special Investigation Team (SIT) has already been formed, headed by Deputy Inspector General of Police Abhinav Kumar, to investigate the matter. The court has underscored the importance of a thorough and independent probe, especially as the PIL petitioner claimed that only low-profile individuals were being arrested while politically influential "real culprits" were being left out. The court also took note of the fact that five zonal chairpersons and two committee chairpersons had resigned, suggesting a political angle to the issue.
The court has directed that the SIT's investigation should be monitored by higher authorities to ensure no one is left out from prosecution. The Madurai Corporation has reported that an 11-official committee has been constituted to begin the verification process. The court has now adjourned the case, awaiting the submission of a detailed and effective action plan that will ensure the entire reassessment drive is carried out successfully.
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