The Ulhasnagar Municipal Corporation in Maharashtra's Thane district has sealed three branches of public sector lender Canara Bank for non-payment of property tax of Rs 2.75 crore, an official said on Saturday.
The bank, however, claimed that the action was taken even when the matter was before the court.
The civic body's spokesperson Yuvraj Badhane said that corporation officials sealed server rooms of three branches of the bank in the town on Thursday.
A senior official of Canara Bank said the bank has been paying taxes on time for the three branches which run from leased premises.
"In 2017-18, the corporation informed that the bank needs to pay an additional amount of Rs 2.69 crore in taxes ...we filed a case in a small-causes court (challenging the demand)," he said.
"The court asked us to deposit 25 per cent of additional amount in the court and then negotiate with the municipal authority," the official said.
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"On January 23, the municipal authority sealed the branches even as the negotiations are still on," he claimed.
Saying that it has disrupted daily operations of the three branches, the officer said the bank has moved the Bombay High Court against the action and the matter would be heard on January 27.
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