Maha Cabinet clears amendments for removal of presidents of municipal councils, municipal panchayats & industrial towns

As the state legislature is not in session, the state government will issue an ordinance.

Earlier, for the removal of the president from office, a proposal with the signatures of fifty percent of the elected members needed to be sent to the District Collector. After that, action was taken at the government level to remove the president from office. Instead, now the elected members will be given the power to remove the president from office.

Accordingly, a proposal with the signatures of two-thirds of the elected members will be sent and based on which the District Collector will have to hold a special meeting within ten days and take a decision through voting.

In a related development, the Cabinet also approved to harmonise the rules for leasing real estate of municipal corporations and properties in municipal councils, municipal panchayats and industrial towns. It was also decided to issue a notification regarding new rates, Rules were framed on November 6, 2023, regarding the lease, renewal and transfer of immovable property of Municipal Corporations in the state.

Accordingly, uniformity will be brought in the transfer of properties in all urban local bodies in the state. For this, Maharashtra Municipal Councils, Nagar Panchayats and Industrial Towns (Transfer of Immovable Property) (Amendment) Rules 2025 will be framed on the lines of the Municipal Property Transfer Rules. The properties of the Municipal Council, Nagar Panchayat, and Industrial Town have been classified as residential, educational, charitable, and public, commercial, and industrial.

According to the revised rules, the lease rate of properties for residential, educational, charitable, and public use will not be less than 0.5 percent of the current market value (ready reckoner).

The Cabinet also approved the provision for the lease rate for properties for commercial and industrial use, which will be less than 0.7 per cent of the market value. The valuation, lease rate and security deposit of these properties will be determined by a five-member committee headed by the District Collector of the respective districts. Objections and suggestions will be invited regarding these rules, and then a final notification will be published.

Meanwhile, the Cabinet also cleared the Abhay Yojana for property tax dues in Municipal Council, Nagar Panchayat, Industrial Township areas by waiving penalties. The government release said that there is a provision to impose a penalty of 2 per cent per month on the arrears of property taxes in the municipal council, municipal panchayat and industrial town areas.

Due to this, the total arrears of the property holders increase, and the amount of the penalty often exceeds the original tax amount. Since the penalty amount is more than the original tax amount, property holders are reluctant to pay the tax.

As a solution to this, the Abhay Yojana will be implemented by waiving the penalty on the arrears of property tax. There is no provision for such a penalty waiver in the previous Act. The Cabinet approved the inclusion of such a provision in the Act.