CBI books three ex‑Port Blair municipal officials over Rs 2.08 crore tax loss

CBI books three former Port Blair Municipal Council officials for alleged collusion that let hotels and bars obtain no‑dues certificates while Rs 2.08 crore of interest on unpaid property tax remained outstanding. The FIR filed on Sept 29 says a former revenue officer, an ex‑assistant revenue officer and an ex‑tax inspector were implicated after a preliminary probe found irregularities in the council’s revenue section between 2020 and 2023. During that period the council issued about 252 no‑objection and no‑dues certificates to 32 hotels and bars without collecting the accrued interest, which the FIR estimates at Rs 2,08,55,880. The tax inspector reportedly calculated the dues but still recommended the certificates, and the assistant revenue officer also backed the clearance despite interest remaining unpaid. Files show the chief account officer, the designated approving authority, was bypassed and signatures were signed by the revenue officer instead. The FIR also notes that after a 2015 Calcutta High Court order allowing a new rental‑value assessment method, the council failed to fully implement the directive, leaving tax calculations and interest arrears unaddressed since 2011. The CBI’s anti‑corruption branch has now charged the three officials for conspiracy with hotel and bar owners to evade interest payments, a loss that hits the public exchequer.

Context

Property tax became a key revenue source for Port Blair after octroi was removed by GST. Weak oversight allowed municipal staff and business owners to bypass interest payments, reducing funds meant for civic services.