AMC Faces Rs 1.15 Crore Tax Notice from Ginger Village Panchayat
In a curious turn of events, the Ahmedabad Municipal Corporation (AMC), known for its stringent actions in collecting property taxes—even in cases as small as Rs 10,000—has found itself on the receiving end of a significant tax demand from Ginger village panchayat in Kheda district. The corporation is being called to account for a backlog of Rs 1.15 crore in property tax for facilities it has operated on the village’s land for nearly seven years. This situation marks a stark contrast to the aggressive stance the civic body typically takes in its tax collection activities across Ahmedabad.
The dispute stems from the state government’s allocation of 39,113 square meters of land from Ginger village to AMC in 2010. The corporation constructed a raw water pump house and a water treatment plant with a capacity of 200 million litres per day (MLD) on the site to supply drinking water to the city. However, despite these facilities being operational for over a decade, AMC has failed to pay property tax on the land since the 2018-19 fiscal year. Ginger village panchayat’s formal tax demand follows a series of unsuccessful attempts by AMC to secure a tax exemption. The corporation argued that the water treatment facilities were essential services, which led to an initial plea for exemption under state guidelines.
The refusal of the exemption request during a high-level meeting in July 2024 has now prompted Ginger village panchayat to take a more formal approach. The notice issued on October 19, 2024, called for the immediate settlement of the dues, covering the period from 2018 to 2024. According to the meeting’s minutes, the state officials—including the principal secretary, development commissioner of Kheda district, and AMC’s deputy municipal commissioner—made it clear that the dues must be cleared promptly. The notice put pressure on the civic body, forcing AMC to seek approval from its standing committee to settle the Rs 1.15 crore tax obligation in four instalments over three months, each amounting to Rs 28.78 lakh.
While this ongoing issue between AMC and Ginger village highlights the financial dynamics between urban and rural governance, it also brings attention to the greater question of public infrastructure and sustainable resource management. The water treatment plants built by AMC in areas like Jaspur and Raska, which fall under the jurisdiction of Ginger village, are essential to meeting the ever-growing water demand in Ahmedabad. However, this tax dispute underlines the challenges faced by local authorities in coordinating infrastructure development while managing financial responsibilities. The delayed payments are particularly poignant, given the growing emphasis on sustainable water management and the role such facilities play in both urban and rural development.
From a sustainability perspective, the demand for property tax payment comes at a time when both urban and rural areas are becoming more reliant on integrated water supply systems. While the delay in tax payments could create friction, it also highlights the need for better governance models that balance urban development with local administrative requirements. The failure to pay these taxes could, in the long term, undermine the trust and collaboration between municipal corporations and rural bodies, potentially affecting future projects aimed at fostering long-term water sustainability.
This case exemplifies the broader issue of civic and rural collaboration in urban water management systems. As cities like Ahmedabad continue to expand, understanding and respecting the financial and legal obligations of all stakeholders will become crucial for maintaining the harmony necessary for sustainable urban and rural growth.
