Allegations have surfaced that bribery and so-called “party fund” collections tied to property tax assessment and approvals are continuing in the Municipal Administration Department, which is under Chief Minister Vijay’s control.
Tamil Nadu’s 25 municipal corporations function under this department. Property tax is levied on buildings, houses and land, and applicants must seek assessment when new houses or commercial buildings are constructed. The tax is fixed by the corporation based on the built-up area.
Departmental sources claim that, in earlier regimes, applicants seeking house-building approvals were allegedly made to pay Rs 10 per sq ft, while commercial building applicants were asked for Rs 20 per sq ft in the name of “party fund”. The collections were said to be routed through a person appointed by the department leadership and gathered via corporation officials, with the money allegedly reaching multiple levels including ministers, senior officials, councillors and municipal staff.
The sources further alleged that such collections were higher in corporations such as Chennai, Coimbatore, Tiruchirappalli and Madurai. They also pointed to irregular practices like under-reporting area to reduce tax, or showing commercial buildings as residential to attract lower tax—methods that, they said, had earlier led to councillors and officials in Madurai corporation being caught in a related case.
Despite the Chief Minister’s stated position that his government would act against bribery and illegal collections, the sources alleged the practice continues, and that applications of those who do not pay are being kept pending for weeks.
