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The municipal corporation is owed INR 1,881 crore in property tax, with 15% of this owed by 100 major defaulters, who collectively owe INR 288.4 crore. The corporation plans to target these defaulters to boost revenue, with actions such as sealing properties, disconnecting water supply, and auctioning properties if dues remain unpaid. While the MCG has projected INR 300 crore in property tax earnings for the current fiscal year, it fell short of its INR 500 crore target last year. Residents' welfare associations have pointed out that data errors in property IDs, including incorrect contact details and property sizes, have contributed to payment delays.
The total property tax dues owed to the municipal corporation amount to INR 1,881 crore. A significant portion, 15%, is attributed to just 100 high-value defaulters, each owing over INR 1 crore. As per the corporation's records, these 100 individuals collectively owe INR 288.4 crore. The remaining balance of INR 1,593 crore is owed by nearly 5 lakh other property owners. Advertisement
In an interview with TOI upon his appointment, newly appointed MCG Commissioner Ashok Kumar Garg stated that the civic body would focus on major defaulters to boost its revenue. Property tax is a vital income source for the corporation, which has projected earnings of INR 300 crore from property tax for the current fiscal year (2023-24). For the previous fiscal year (2022-23), MCG had aimed to collect INR 500 crore from property tax but fell short, collecting only half of the target. On Monday, a senior official from the corporation informed TOI that notices had been issued to large defaulters with substantial dues.
The official stated that the corporation plans to take strict actions against defaulters in order to recover outstanding payments. These actions may include sealing their properties, disconnecting water supply, and even auctioning the properties if the dues remain unpaid. The MCG chief informed TOI that action would be taken against the defaulters within the next 3-4 days. He added that the priority would be to target major defaulters with significant outstanding amounts. Initially, notices would be issued to them, followed by further steps if necessary.
Residents' welfare associations, when asked about the outstanding dues, stated that many defaulters are unable to clear their payments due to issues with property IDs. Earlier this year, the MCG also received complaints from property owners, who highlighted that discrepancies in property ID information were delaying their payments. They cited incorrect contact details, property sizes, and addresses as the main reasons they were unable to pay their taxes.
In conclusion, the MCG is facing a significant challenge in recovering property tax dues, with a large portion owed by a few high-value defaulters. While the corporation is taking strict measures to address these outstanding payments, such as issuing notices and planning further actions like property sealing, the issue of data inconsistencies remains a major obstacle. Many residents are unable to pay due to incorrect property information, leading to delays in payments. Despite efforts to resolve these discrepancies, little progress has been made, highlighting the need for urgent reform in the property ID system to streamline tax collection.
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