Following a notable increase in cheque bounce incidents related to property tax payments, the Pimpri Chinchwad Municipal Corporation(PCMC) has commenced the issuance of notices and the initiation of legal proceedings against those who default. A senior representative from the property tax department verified that in March 2025 alone, there were 780 cheques worth Rs 10.15 crore that were dishonoured, marking the highest figure observed in recent years.
This ongoing problem has necessitated the civic body to enhance its enforcement measures, particularly during the last quarter of the financial year when efforts to recover taxes are heightened. As per official statistics for March, Thergaon led the list with 235 bounced cheques amounting to Rs 3.71 crore, followed by Bhosari with 97 cases totaling Rs 1.57 crore.
Both areas are primarily occupied by industrial and commercial entities that typically opt for cheque payments. Civic officials indicated that defaulters are granted a two-week timeframe to settle their outstanding dues. Should payments not be made within this designated period, the PCMC will proceed with property attachment actions. “These defaulters will no longer be permitted to utilize cheques for payments,” stated a senior official.
In discussing the recurring trend, an official from the property tax department remarked, “Our recovery teams increase their visits to defaulters significantly in the final quarter to enhance tax collection. To evade immediate actions such as property seizure, many property owners submit post-dated cheques and assure that they will maintain adequate funds. However, a significant number of them do not follow through on this promise.
Officials have reported an increase in such cases during March, attributed to intensified recovery efforts. These bounced cheques not only hinder the collection process but also elevate the administrative burden. At present, there are 630,000 properties registered with the property tax department in Pimpri Chinchwad. Last year, the PCMC successfully collected Rs 966 crore in property tax.
“Typically, we accept cheques with a clearance period of merely one or two weeks, depending on the circumstances,” stated the official. He further mentioned that they contemplated the possibility of ceasing cheque payments; however, since many legitimate taxpayers utilize this method, the proposal was ultimately abandoned.
“Nonetheless, we are considering its implementation for March each year,” he added. An official from the property tax department also verified that they receive over Rs 200 crore in property tax annually through cheque payments, indicating a significant preference among taxpayers for this payment method.
