The Madras High Court has ordered the Madurai Corporation commissioner to form special teams to verify property tax assessments for all buildings across the city, following allegations of large-scale undervaluation and misappropriation of municipal funds. The directive comes amid an ongoing probe into the property tax scam in the city, which has reportedly led to losses exceeding ₹200 crore.
The case, brought before the court through a public interest litigation by T Ravi, AIADMK councillor of Ward 83, alleges that several officials of the Madurai Corporation, in collusion with zonal chairpersons, deliberately undervalued properties to evade proper taxation. According to Ravi, low-level employees faced punitive action, while politically influential individuals allegedly involved in the scam escaped scrutiny.
In response to these concerns, the High Court had earlier recommended the formation of a special investigation team (SIT), headed by Deputy Inspector General of Police Abhinav Kumar of the Madurai range. The SIT is tasked with conducting a comprehensive probe into irregularities in property tax assessment over the past decade, reviewing records and determining accountability for the alleged revenue shortfall.
During the latest hearing, the state government informed the bench that the SIT has accelerated its investigation. Officials have requested the last 10 years of property tax assessment data from the Director of Municipal Administration to support a thorough examination of potential malpractices.
A division bench comprising Justice S M Subramaniam and Justice G Arul Murugan emphasised the importance of examining undervaluation allegations. The judges highlighted that any deliberate miscalculation of property values not only violates the provisions of the municipal tax framework but also results in substantial financial loss to the civic body. They stressed that the SIT’s investigation must be rigorous, covering all responsible individuals irrespective of rank or political affiliation.
The court specifically instructed the Madurai Corporation commissioner to constitute teams that will systematically verify the accuracy of property tax assessments for every building in the city. The bench made it clear that the process should adhere to statutory guidelines, ensuring that assessments reflect the true value of properties in compliance with municipal rules. A report on the formation and progress of these teams is expected to be submitted to the court.
Ravi’s petition cited irregularities first uncovered in 2024, alleging that corporate officials and local political representatives manipulated property valuations to reduce tax liabilities. The case underscores systemic vulnerabilities in municipal tax administration, including lapses in oversight and accountability mechanisms. Legal experts note that such large-scale undervaluation can have cascading effects on civic services, as property tax constitutes a significant portion of municipal revenue.
The High Court has emphasised that proper action must be taken against all individuals responsible for the revenue losses, noting that oversight by senior police and administrative officials is critical to prevent interference or suppression of evidence. By mandating citywide verification, the court aims to restore confidence in the municipal tax system and ensure that future assessments are transparent and accurate.
As the SIT continues its probe, residents and stakeholders in Madurai await concrete outcomes, particularly corrective measures to address undervalued properties and ensure compliance with assessment regulations. Civic authorities have also been reminded of their duty to implement reforms and maintain transparent records, reinforcing the role of statutory audits in safeguarding municipal resources.
Image source- hcmadras.tn.gov.in
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