In August/September this year, Chennai resident Rajiv attempted to update his name in the property tax records of his flat in Chromepet. The Tambaram City Municipal Corporation (TCMC) rejected his online application and asked him to file the papers offline. He was also told to pay Rs10,000 towards the charges for a name change. Finding this amount excessive, he brought the issue to the attention of the press.
A local reporter investigated the matter and contacted the TCMC Commissioner, who allegedly disputed the high fees at first. However, after consulting officials, he later confirmed that such a fee is mandatory, per a government gazette released in 2022. Notably, the notification was dated November 3, 2022, yet it included a signature from the previous Commissioner dated July 14, 2022, leading to confusion about its legitimacy. Moreover, the notification claimed that the charges would retroactively apply from April 1, 2022, despite being issued months later, prompting concerns about fairness.
Exorbitant charges for services
I live in a residential complex comprising 57 flats. One of our residents, who purchased a flat, informed me of these charges. I immediately compared these charges with those levied by the Greater Chennai Corporation (GCC).
The Gazette outlines the charges for updating of name in the property tax receipt as follows:
- Properties valued between Rs. 1,00,000 and Rs. 5,00,000: Rs. 1,000
- Rs. 5,00,001 to Rs. 10,00,000: Rs. 3,000
- Rs. 10,00,001 to Rs. 20,00,000: Rs. 5,000
- Rs. 20,00,001 to Rs. 50,00,000: Rs. 10,000
- Rs. 50,00,001 to Rs. 1,00,00,000: Rs. 20,000
These charges significantly affect many residents, particularly those who may have invested their life savings in their property. Many have already paid substantial stamp duties, making the additional fee for a name transfer seem unjustifiable.
Read more: Explainer: How is your revised property tax being computed in Chennai?
Feeling that the Tambaram Corporation charges were quite high, I took up this issue and wrote to the Corporation. I sent petitions to the Chief Minister and the Minister for Municipal Administration among others. I also wrote to the Chengalpattu District Collector as Tambaram comes under his jurisdiction. However, I haven’t received a response from any of them.
Residents caught unawares about revised fees
Such proposals should also receive broad publicity to ensure public awareness, yet this notification was only advertised in a single Tamil daily, Theekathir, in its issue dated April 22, 2022. It sought views/objections to the fee hike proposal from the general public. According to the gazette notification, the corporation received only one objection.
This raises questions about the transparency of the decision-making process within the TCMC.
In a democratic government, it is customary to engage stakeholders when proposing changes to tax rates or charges. However, TCMC did not follow this practice. While the proposal may have been discussed in council meetings, elected officials should have done a better job of informing the public. The lack of communication from both the Corporation and the councillors has left the community feeling neglected.
Had there been public consultation, it is likely the proposal would have faced considerable opposition. The unilateral decision on the charges disregards public sentiment and needs to be revisited.
Different prices for different corporations
This fee structure was introduced following the delineation of wards during the formation of the Tambaram Corporation. The Tamil Nadu government formalised the creation of the Corporation on September 12, 2021, incorporating several municipalities and town panchayats.
When the area was part of the Pallavaram Municipality, the civic body did not collect fees for these services. The Greater Chennai Corporation (GCC) charges much lower fees for similar services. The TCMC should have taken these rates into account when implementing its own. While the TCMC is exploring various revenue-generating options, it must ensure that these do not place an undue burden on residents.
Many residents are only discovering this order in real time, as they apply for the name changes. Government orders must be widely publicised to ensure public knowledge and participation in matters affecting their lives. Issues of concern to the public must be published in leading widely-read newspapers.