Cuttack, March 14: Orissa High Court has decided to consider revision of holding tax for residential buildings that were being used for commercial purpose in Bhubaneswar city.

Accordingly, the court has issued a notice to the authorities concerned to file response to a PIL seeking direction for withdrawal of plan approval given for the residential buildings that were being used for commercial activities and a revision in holding tax.

The PIL, filed by Purna Chandra Sahoo, a Talcher-based social activist, alleged that the Bhubaneswar Municipal Corporation was suffering extensive revenue loss in the form of holding tax as there was widespread use of residential buildings for commercial purpose. Holding tax for residential buildings is lower than the rates fixed for commercial buildings.

“The division bench of Chief Justice A.K. Goel and Justice A.K. Rath, before which the PIL came up on Thursday, adjourned the matter for hearing after four weeks along with a response from the vice–chairman of Bhubaneswar Development Authority and the commissioner of Bhubaneswar Municipal Corporation,” petitioner counsel Surya Kanta Sangneria told The Telegraph today.

“The bench also issued notice to the general administration department,” he added.

According to the petition, residential buildings constructed on plots allotted for the purpose on lease by the state government at Forest Park, Gautam Nagar, Surya Nagar, Saheed Nagar, Satya Nagar, Nayapalli, Chandrasekharpur and other areas “have been given on fabulous monthly or yearly rent to multinational companies or big industrial houses, who are carrying on commercial and trading activities there”.

“In the process, both the conditions of lease and the provisions of the Bhubaneswar Development Authority (Planning and Building Standards) Regulations and the Orissa Municipal Corporation Act were being flouted. Huge amount of holding tax was also being evaded,” the petition alleged.

The violators included “bureaucrats, politicians and other influential persons,’’ the petitioner alleged, while seeking direction to concerned authorities to regulate the lease conditions and town planning conditions. The PIL also expected the court to make an inquiry into residential buildings being used for commercial purpose and direction for prosecution as per law and revision in holding tax.

The Bhubaneswar Municipal Corporation has so far collected Rs 12 crore holding tax this year. However, it plans to achieve the target of tax collection of Rs 23 crore. The tax collectors are working overtime to meet the target. Around 50 field staff have been engaged by the civic body to collect holding tax.