New York: In a bid to fill its $ 3.4 billion Budget gap, the New York city has begun legal proceedings against India, Mongolia, the Philippines and Turkey to recover $ 106 million, which it alleges they owe in property taxes.

In a suit filed in the Manhattan's Supreme Court, the city alleges that India owes $ 16,376,702 in property taxes for the property it owns in prime midtown area near the United Nations since 1985.

India had rebuilt a multi-storey building from which its mission to the United Nations operates. It also has residential apartments, in which diplomats and officers of consulate stay.

The city says that under Vienna Convention, the property used for official purposes by foreign governments is exempt from taxes, but when used for residential purposes for "not senior" staff, it is subject to property tax.

The complaint against India and Mongolia says that the property is being used to house employees other than the Ambassadors or the head of the mission.

PTI