Cancer Hospital's Bank Account Seized Over ₹9 Crore Property Tax Dues

LMC takes action after consistent default

The Income Tax Department conducted search and seizure operations on several healthcare provider groups in Delhi-NCR. A total of 44 premises were covered during the action, leading to the seizure of incriminating evidence related to tax evasion.Representative Image: Pexels

Published on:

20 Mar 2025, 5:00 am

The Lucknow Municipal Corporation (LMC) attached the bank account of Kalyan Singh Super Speciality Cancer Institute and Hospital (KSSCIH) on Tuesday for defaulting on payment of property tax of Rs 9 crore. Despite several notices and reminders, the hospital administration failed to pay the arrears, and the authorities were forced to take strict action.

Hospital administrators expressed concern.

A hospital administrator clarified that though the account has not been completely frozen yet, any prohibition on transactions would impede the buying of life-saving medicines and medical equipment. As of now, the institute's account has not been frozen.

However, if transactions are stopped, it will severely affect the procurement of essential medical supplies and other necessities required for the hospital's functioning. We are actively engaged in discussions with senior authorities to resolve the outstanding dues at the earliest." said the hospital administrator.

Legal basis for seizure

A senior LMC official corroborated that the action has been taken under sections 509 to 516 of the Uttar Pradesh Municipal Corporation Act, 1959, where movable properties can be attached due to outstanding dues.

"Despite repeated attempts, including personal visits to the hospital administration, our requests were ignored. As a result, the bank account of the hospital has been frozen and no amount can be withdrawn until a dues certificate is obtained," the official explained.

The Greater Hyderabad Municipal Corporation (GHMC) took action against Pratima Hospital in Kachiguda for not paying property taxes. GHMC officials seized the hospital due to unpaid tax dues of over ₹37.35 lakh, which had accumulated over the last two years. Representative Image: Pexels Person Filing Tax Documents Representative Image: Pexels

Stern warning to other defaulters

The LMC has made it a point that the action should serve as a warning to all tax defaulters, especially large establishments, that non-compliance will not be tolerated. "We are determined to implement tax laws and will continue to take stern action against those who fail to meet their obligations," the official said.

Hospital promises resolution

KSSCI Finance Officer Rajnikant Verma confirmed that the hospital received the notices in February and informed the higher authorities promptly. He assured that necessary action is underway, and the outstanding amount will be cleared soon.

We received notices from LMC in Feb, following which we promptly informed the higher authorities about the matter. The necessary process is underway, and the outstanding amount will be cleared soon.

Rajnikant Verma, Finance Officer of KSSCI

As negotiations are underway, the hospital is hopeful of an understanding that will prevent disruption of critical health services.

(Input from various sources)

(Rehash/Muhammad Faisal/MSM)

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