The arrested were identified as Ravi, husband of the former personal assistant to the Mayor, and Karunakaran, who was placed under suspension a few days ago. After the scam came to light, Ravi was transferred to Rameswaram Municipality, sources said.
The scam came to light after AIADMK members complained for irregularities in the property tax assessment at a council meeting recently and took the issue to the attention of the Corporation Commissioner.
In an immediate follow-up action, eight persons, including an Assistant Revenue Officer, were arrested in connection with the scam. Apart from this, six bill collectors and a computer operator were also suspended by the Corporation.
The scam involved fixing of lesser property taxes for around 150 buildings, resulting in loss of several lakhs of rupees to the Corporation, sources said.
Some of the bill collectors and revenue officials reduced taxable areas during assessment and changed commercial properties into semi-commercial, and also asked proprietors of commercial establishments to remove shutters and put doors and iron gates to make it appear that such buildings as self-occupied domestic portions.
“Therefore, it appeared to be a deliberate scam,” sources said.