Mumbai, Apr 15 (PTI) The Maharashtra cabinet on Tuesday approved a proposal to waive the monthly two per cent penalty on property tax arrears in municipal council, nagar panchayat and industrial township areas.

A statement from the Chief Minister’s Office (CMO) said it was observed that sometimes the total penalty exceeds the original tax amount, and property owners then delay paying up.

”The government has decided to waive the penalty, and the existing laws related to municipal councils, nagar panchayats and industrial townships will be amended to introduce this amnesty scheme,” said an official statement.

Another amendment will authorise the members of municipal councils, nagar panchayats and industrial townships to remove their respective presidents from their posts.

Earlier, at least 50 per cent of the members had to submit a resolution to the district collector seeking the removal of the president of a municipal council, and the government then took necessary action.

With the new amendment, the members will have the powers to remove a council president.

”Two thirds of the elected members will send the proposal with signatures, after which the district collector will convene a special session of the local body in ten days and a voting will be held. The cabinet approved the amendment and issuance of an ordinance for the same (as the state legislature is not in session at present),” said the CMO release.

In another decision, the cabinet approved the proposal to bring in a new legislation to provide that the rate of interest for a delay in the payment of compensation for land acquisition will be uniform and one per cent higher than the prevailing bank repo rate.

Under the Land Acquisition Act of 2013, the rate of interest is 12 percent, 9 per cent and 15 per cent under different clauses. It puts a financial burden on the state exchequer and increases the project cost, said the release.

As per the proposed amendment, the interest rate will be uniform, and set at one percent above the repo rate. PTI MR KRK