The Tamil Nadu Village Panchayats (Recovery of Sums and Power to Write-off Irrecoverable Taxes, Fees, etc., Restrictions and Control) Rules, 1999

What the rules govern

The Tamil Nadu Village Panchayats (Recovery of Sums and Power to Write-off Irrecoverable Taxes, Fees, etc., Restrictions and Control) Rules, 1999 apply to money due to a Village Panchayat. They were made under the Tamil Nadu Panchayats Act, 1994.

The rules provide a recovery process where neither the Tamil Nadu Panchayats Act, 1994 nor rules made under it provide another method. They also set out the checks, approvals and records required before an unpaid amount can be written off as irrecoverable.

Who may be affected

The rules may affect a person who owes a tax, fee or other amount to a Village Panchayat. They also guide Panchayat Assistants, part-time clerks, Revenue Department officers entrusted with collection work, Executive Authorities, Village Panchayats and Collectors.

For a property buyer or owner, the rules are relevant if a Village Panchayat claims that a tax, fee or other sum is payable. The document does not create a separate land approval or property transfer process.

Recovery of amounts

Where no recovery procedure is provided under the Tamil Nadu Panchayats Act, 1994 or its rules:

• The Village Panchayat must demand the amount by raising a bill.
• The bill must be served on the person or persons concerned.
• The amount is recovered in the same manner provided for collecting taxes under the Act.

Writing off irrecoverable amounts

The rules require several steps before an amount can be written off:

• The collecting officer must report the irrecoverable amount and give reasons.
• The Executive Authority must verify the report.
• A list must be prepared once every quarter and placed before the Village Panchayat at its next meeting.
• The Executive Authority must ensure that the defaulter has no attachable property and that all recovery methods have been tried unsuccessfully.
• If a single irrecoverable tax, fee or other amount exceeds one hundred rupees, the Executive Authority must obtain the Collector's approval.

Records required

A Village Panchayat must maintain a register of written-off amounts in the prescribed form. Its minutes must record the nature and period of the amount, the assessment number for tax items, and the amount written off. Relevant demand notices and warrants must be stamped “written-off”, and corresponding entries must be made in the demand register.