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Hyderabad, Telangana, India
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Thursday, April 14, 2011

Bouncing cheques anger civic body

Officials of the Greater Hyderabad Municipal Corporation have decided to initiate legal action against property tax payers whose cheques bounced. Since bouncing of cheques is becoming all too common, the GHMC is also planning to engage an independent agency to collect money from tax payers who issue invalid cheques.GHMC officials said the corporation suffered a loss of more than Rs 10 crore because of cheque bounce cases during 2010-11. “For instance one V Sobha Rani, resident of Moosarambagh, issued a a cheque of Rs 13,000 but bank officials returned the cheque due to insufficient balance in her account,’’ a GHMC official said. Officials were in for a bigger shock, when cheques worth Rs 3.1 crore given by residents of the twin cities bounced, out of the total Rs 40 crore collected on March 31. In another case, A Krishna, resident of New Malakpet, gave a cheque to bill collectors with incomplete signature on it’ leading to the bank returning the cheque. Subash Agarwal, a resident of Santoshnagar issued a cheque after he had closed his bank account.“We will initiate legal action against tax payers, who issue invalid cheques to the GHMC for payment of property taxes. Our staff are still working in segregating bounced cheques,’’ said S Hari Krishna, additional commissioner, finance and revenue, GHMC. The civic body has also released a notification to hire a new agency for collecting cheques.GHMC financial adviser T Vijay Kumar said besides the issue of lack of sufficient funds, several cheques bounced due to incomplete signatures, overwriting on cheques, and corrections to signatures without counter-signatures. The bankers rejected to encash the cheques due to such mistakes. “Legal notices will be sent to errant tax payers asking them to give an explanation about why action should not be initiated against them,” Vijay Kumar said. A similar situation was witnessed last year when 800 cheques worth Rs 6 crore bounced.

By Mouli Mareedu
moulimareedu@gmail.com

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