The corporation's new-found resolve has netted Rs 44 crore in the 1998-99 financial year alone, with its target for 1999-2000 pegged at Rs 50 crore. The 500 small scale unit holders in the Trans-Thane Creek Industrial Creek Area comprise 70 per cent of the assesses in Navi Mumbai, Rabale, Ghansoli, Mahape, Pawne and Turbhe. The rest comprise individual, private cooperative housing societies.

The one-time property tax is payable by unit-holders on execution of their lease deed agreement with the Maharashtra Industrial Development Corporation (MIDC), the developer of the industrial belt. On commissioning the industrial unit, MIDC passes the copy of the records, including the Building-Completion Certificate (BCC), to the NMMC for assessment and recovery of property tax payable.Alleging corruption by officials of the NMMC's Property Tax Department, M Raman, president of the Bombay Small Entrepreneurs' Association, says unit-holders are told that the tax is calculated on the basis of the saleable value of the unit, including the cost of land and construction. However, as per the rules, the tax is to be computed on the basis of the property's rateable (rental) value.

Explains Raman: ``About 1,200 members have set up businesses in Navi Mumbai in recent years. The cost of land in the TTC area is Rs 3,000 per sq mt, with at least Rs 5 lakh spent on the construction of the industrial unit.''

``The highly exaggerated amount quoted by civic officials is then verbally communicated to the unit holder. Subsequently, the official makes an offer, saying he can reduce the the tax liability by at least 75 per cent, for a consideration, of course. Then he proceeds to cite a sum calculated on the basis of the property's rateable value, which obviously amounts to much less. This, however, isprojected as the officer's handiwork. Usually, 25 per cent of the reduced amount is paid as consideration,'' Raman reveals.

Traders also claim that in the wake of recessionary conditions, they have been reeling under the impact of the high property taxes calculated on the basis of values framed during the boom in real estate. President of the Mahape Industrial Association, D Narsiah, said: ``When MIDC developed this industrial belt, it was under the purview of the respective Gram Panchayats, till CIDCO took over in 1974. We continued paying property taxes at the earlier rates. The NMMC was formed in 1992, with the entire industrial belt earmarked in their territory. Since they cannot recover much from MIDC, they have targeted unit-holders to realise their revenues. We have become scapegoats.''

Traders are also confused as to whom the tax is payable. In the leave-agreement with MIDC, a clause distinctly states that the unit-holder is to pay approximately Rs 13,500 per annum under heads like services,taxes, government revenues, etc. Asks Narsiah: ``Since the MIDC recovers the taxes from us annually, why should also pay the NMMC? Moreover, since infrastructure is provided by the MIDC, what right does the NMMC have to stake a claim.'' Representatives of all five industrial associations here are now considering filing a writ petition in the Bombay High Court against the lack of accountability and the alleged high-handedness of both the MIDC and the NMMC.

Counters P B Kulkarni, deputy assessor and collector of property taxes, NMMC: ``We are empowered under Section 139 of the Bombay Provincial Municipal Corporation (BPMC) Act, 1949, to recover taxes from the end users who have the primary liability of payment.'' Citing a similar case, Kulkarni says, ``The Builders' Association of Navi Mumbai had filed a writ last month challenging the NMMC's right to collect property taxes, when the land belonged to City and Industrial Development Corporation (CIDCO). The writ was dismissed, with the Bombay High Court rulingthat the builders enjoyed the benefits of the land and were liable to pay taxes.''

Replying to charges of corruption among civic officials, Kulkarni says: ``Not a single case of corruption has been reported till date. All this fuss is being created by people who are themselves defaulters. More than 500 unit holders have not paid their property tax, some of them due for over five years.'' NMMC Commissioner, Subhaschandra Bhakre, told Express Newsline that he has instructed the Property Tax Department to initiate strict proceedings for recovery of dues.

Says Bhakre: ``We have been considerate long enough, keeping in mind the recessionary conditions and their slack business. But, how long can the corporation bear with this? At least, they should clear part of their dues first and only then can we consider extending the payment time frame.''

HELD FOR EXTORTION: A Ganesh mandal organiser was arrested by the Kalwa police on Wednesday for extortion and assaulting a businessman. Bholanath Thakurand three accomplices had approached Sudama Yadav earlier this week, asking for contributions to their Ganesh mandal, and insisted on being paid a sum of Rs 501. Yadav was allegedly threatened with dire consequences when he refused to pay more than Rs 151.

On Monday night, Thakur and his accomplices accosted Yadav and his two sons and beat them up with hockey sticks. A complaint was registered with the Kalwa police and Thakur was subsequently arrested.