Associations of house-owners and traders are set to lock horns with the Calcutta Municipal Corporation (CMC) over the mayor’s decision not to accept property tax and licence fee payments of Rs 2,000 or more in cheques from April.

The house-owners and traders do not want to shell out commission to banks while making payments to the civic body through drafts.

The All Calcutta House Owners’ Association and the Federation of West Bengal Trade Associations have accused the civic authorities of acting as agents for banks.

Mayor Bikash Ranjan Bhattacharyya countered: “How can I allow the civic body to be duped year after year? Several thousands dishonoured cheques are lying with the CMC.”

Over 250,000 cheques are deposited with the CMC annually for the payment of property tax, trade licence fees, mutation fees, water connection charges and commercial water charges. About 70 per cent relates to property tax.

“The mayor is punishing all house-owners for the misdeed of a handful. Hardly three to four per cent of the cheques are dishonoured,” said Amar Mitra of the house-owners’ association.

“We are ready to pay by draft if the CMC grants a rebate equal to the commission charged by banks,” said Federation of West Bengal Trade Associations chairman Mahesh Singhania.

On an average, a bank charges Rs 350 for a draft of Rs 1 lakh, he added. The minimum charge for a draft is Rs 30.

Singhania suggested that bank branches be set up in the CMC headquarters and borough offices where drafts can be obtained without paying the commission.

Over 50,000 dishonoured cheques have been lying with the civic body since 1980-81, said the CMC’s chief manager (revenue) Aniruddha Mukherjee. If a cheque bounces and the amount is not realised within 15 days, the CMC can file a suit against the issuer under the Negotiable Instruments Act.