RTI Disclosure: No GST collected on mobile tower rent, Rs 14.20 crore loss to Chandigarh MC
Ramesh Goyat
Chandigarh, March 16, 2024 – A major financial lapse has come to light through an RTI query filed by Chandigarh-based activist R.K. Garg. The Chandigarh Municipal Corporation has suffered a revenue loss of Rs 14.20 crore due to changes in the mobile tower rental policy and an additional Rs 9.61 crore loss due to irregularities in rent collection.
Adding to the issue, the corporation also failed to collect Rs 68.11 lakh in GST on mobile tower rentals, further deepening the financial crisis.
Policy change led to Rs 14,20 crore loss
In 2015, the Chandigarh Administration had implemented a policy to double the rent of mobile towers every seven years. As per this, the rent was supposed to increase from ₹5 lakh to ₹10 lakh in 2022.However, policy revisions in 2021 and 2023 kept the rent fixed at ₹5 lakh, leading to a revenue loss of Rs 14.20 crore between 2022-24.
Rent Collection Irregularities Result in Rs 9.61 Crore Loss
The Municipal Corporation was expected to collect ₹13.40 crore in rent from mobile towers between 2022-24. However, it only recovered:
₹1.35 crore in 2022-23
₹2.43 crore in 2023-24
This resulted in a ₹9.61 crore shortfall, further straining the corporation’s financial resources.
Rs 68.11 Lakh GST revenue loss
Records obtained through RTI reveal that 142 mobile towers were installed in Chandigarh between 2022-24, generating a total rental revenue of ₹3.78 crore.However, despite the 18% GST mandate, the Municipal Corporation failed to levy any tax on the collected rent, leading to an additional revenue loss of ₹68.11 lakh to the government.
What Action Has Been Taken?
Following an audit report that flagged these issues, the department responded that:
- The matter would be raised with the UT Administration.
- Notices would be sent to mobile tower companies for outstanding rent recovery.
- However, no final decision has been taken yet.
Urgent Need for Financial Reforms
The Chandigarh Municipal Corporation is already facing a financial crunch and has sought additional grants from the UT administration.Given the substantial revenue losses, urgent corrective measures are required to recover dues and ensure better financial management.