Set up nearly 50 years ago by Patiala’s royal family and ancestors of former chief minister Captain Amarinder Singh, the prestigious Yadavindra Public School is embroiled in a tax issue these days.

With tax arrears mounting to over Rs 17 crore, the school finds itself cornered as the Patiala Municipal Corporation (PMC) threatens to move ahead with tax recovery by auctioning school property.

An auction notice under the Punjab Municipal Act 1976 has been sent, say PMC sources adding: “The school failed to explain its stand on the issue and there was no reason why they should not have been served with a notice.”

House Tax at the rate of Rs 3.5 lakh per year was imposed on the school in 1995, said sources adding that the MC revised the same to Rs 4.65 crore per annum three years ago in accordance with the Punjab Municipal Act.

Confirming that the school is yet to pay the pending arrears PMC Commissioner M S Narang said all steps will be taken to ensure that the arrears are recovered. Narang justifies the tax amount saying the school charges heavily from students for a host of new facilities added over the years.

The school management was earlier asked to appear before the House Tax sub-committee for presenting its case or submitting any objections. They, however, failed to do so.

“We will send them a notice again in a week to auction their property if they fail to deposit the tax amount,” said officials.

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