In a proactive move to address chronic revenue leakage, the Greater Hyderabad Municipal Corporation (GHMC) has initiated decisive action against property owners who issued dishonoured cheques for payment of property tax obligations in the preceding fiscal year.
Drawing upon legal counsel, GHMC authorities have commenced dispatching notices to defaulters whose cheques failed to clear through banking channels. The recourse is framed within the purview of Section 138 of the Negotiable Instruments Act, 1881, which stipulates penalties for the dishonouring of cheques used in the discharge of financial obligations. The quantum of unrealised funds due to bounced cheques presently stands at an alarming ₹10 crore, stemming from approximately 700-800 defaulting assesses, divulged officials privy to the matter. “Historically, the GHMC grappled with inaction in such matters; however, this fiscal year heralds a paradigm shift in approach under the commissioner’s unwavering resolve to address defaulters,” remarked an official speaking on the condition of anonymity. Invalid cheques, ranging from signature discrepancies to insufficient fund provisions and even those emanating from closed accounts, underscore the multifaceted challenges faced by GHMC in revenue collection. Furthermore, culpability extends to bill collectors, who serve as conduits for a sizable proportion of bounced cheques, prompting imminent scrutiny of their role in the process.
Previously, GHMC’s accounting practices permitted premature revenue recognition, leading to audit irregularities. Subsequently, the implementation of a provisional acknowledgment system ensures prudence in revenue recognition, with final receipts contingent upon successful realisation of cheque payments. GHMC’s resolute crackdown on bounced cheques epitomises a concerted effort to fortify fiscal discipline and streamline revenue operations, underscoring its commitment to bolstering financial integrity and accountability in municipal governance. “There are instances when bill collectors, under the pressure of increasing the collection and meeting the targets, force the assesses to give cheques even without sufficient balance. Action is being planned to discourage such behaviour,” another official said.
