Bhubaneswar: The Bhubaneswar Municipal Corporation (BMC) has identified 112 residential buildings which were illegally operating as commercial centres and decided to seal them.In view of Supreme Court’s recent observations on the conversion of residential buildings into commercial ones, the civic body initiated a survey to identify such buildings and enlist them for sealing.“So far, we have identified 112 such buildings. Next month, a further survey will be done to identify more such structures. A segregated list of such buildings will also help us assess the holding tax, which is calculated separately for residential buildings and commercial centres,” BMC deputy commissioner Jogendra Majhi said.He added that residential buildings are being converted for commercial purposes without taking due approval from the planning authority.Hiding information about commercial use of a residential structure does not augur well for BMC’s revenue generation, as the tax slab for commercial holdings is significantly higher than that for residential holdings, according to BMC officials.The officials said that out of a total 1.19 buildings (holdings) listed in BMC database in 2024 for holding tax collection, the exact break-up of commercial buildings is not known and it is a continuous process. “The survey is going on and by the end of it, the total number of holdings may cross two lakh and of which, there could be many residential buildings which are being used for commercial purposes,” BMC’s deputy commissioner Suryamani Pattjoshi said.He added that if there is a deviation from the approved plan, the planning wing will swing into action and the revenue wing will calculate holding tax as per commercial rates.BMC said new buildings have come up in the city and they do not fall under the tax ambit. The civic body added that assessment of such buildings should be carried out to increase the number of holdings for tax calculation.“BMC has engaged a private agency, which will deploy surveyors to identify new holdings, classify them as residential or commercial, and provide the database,” Pattjoshi added.Necessary guidelines have been issued to the zonal offices to assist the private agency with logistics so that the unassessed list can be prepared and the tax assessed.Earlier, a Comptroller and Auditor General (CAG) report pointed out that residential buildings were being used for commercial purposes in the city. The audit also noted that the basements of several buildings, which were approved for parking, were being used for residential as well as commercial uses.
