In the wake of the recent demonetization of Rs 500 and Rs 1000 notes by the central government, the Maharashtra government collected water and property tax totalling Rs 173 crore, the highest amount ever collected in a day.

Manisha Mhaiskar, Secretary of State Urban Development department told on Friday that they had permitted people to pay the property and water taxes in recently obsolete currency notes of Rs 500 and Rs 1000. “As a positive side effect, we were able to collect property and water taxes worth Rs 173 crore. This is the first time we have collected such a huge amount in one day. People are queuing up to pay taxes. We will continue doing this until Friday midnight and are looking at extending this scheme with permission from senior authority,” she said.

Source said that Chief Minister Devendra Fadnavis spoke to Prime Minister Narendra Modi and asked him to allow them to charge and collect state taxes in the ongoing denominations. “Prime Minister Modi readily agreed, after which we issued the GR for the same.

The entire process took up almost two days. Otherwise, we would have collected around Rs 500 crore in the last three days. There are many defaulters who have money but are reluctant to pay the government taxes. Now, permitting the people to pay taxes in the erstwhile currencies pushed them to stand in queues to pay up the same. It is completely unbelievable. Otherwise, we have to slap many notices. It has benefited them and us as well,” source from urban development said, requesting anonymity.

He further said that Chief Minister Devendra Fadnavis also likely to speak with the Prime Minister again to extend the deadline of accepting the passing currencies up to the end of November.

“If Prime Minister Modi allows us, then we will able to collect maximum taxes in this month. People are paying taxes at their respective municipal corporation offices. Most of the corporations are garnering an average revenue of Rs 8-9 crore in a day. This is really encouraging and will boost revenue,” Senior Urban Development department official said.

As per government data, the maximum collections took place in Nagpur, Pune, Nasik, Navi Mumbai, and Pimpri-Chinchwad municipal corporations. Also, the Solapur Municipal Corporation Mayor, Sushila Abute, on Friday, paid her Rs 1.15 lakh dues in denominations of Rs 500.