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The Greater Hyderabad Municipal Corporation (GHMC) has issued red notices to 60% of commercial establishments to recover overdue property taxes. Despite repeated reminders, 1.5 lakh properties have defaulted for two to three years. Additionally, GHMC has served distress warrants to 75 properties with decade-long dues. With unpaid taxes exceeding INR 10,000 crore, the corporation faces financial strain. Efforts include official notices, SMS reminders, and legal action against defaulters. GHMC has collected INR 1,470 crore this fiscal year and aims to surpass INR 2,000 crore. It will conduct 'Property Tax Parishkaram' every Saturday until March 29 to resolve taxpayer grievances.
In a decisive move to recover overdue property tax payments, the Greater Hyderabad Municipal Corporation (GHMC) has issued red notices to 60% of the city's commercial establishments. Despite multiple reminders, more than 1.5 lakh properties out of 2.5 lakh have defaulted on their tax payments for the past two to three years. The civic body has intensified its efforts to enforce compliance and address this growing financial crisis. Additionally, the GHMC has served distress warrant notices to 75 properties that have failed to clear their property taxes for up to a decade. Advertisement
Officials stated that these warrants, issued under Section 269 of the GHMC Act, empower the municipal body to seize and auction properties to recover unpaid dues. Last year, GHMC seized over 120 commercial properties for prolonged arrears. The municipal corporation has warned that more stringent measures will follow if tax defaulters fail to respond. Beyond commercial establishments, approximately 4.5 lakh residential property owners owe significant sums in property taxes, amounting to thousands of crores. This widespread non-compliance has severely strained the municipal corporation's finances, hampering developmental projects and essential services.
Property tax serves as GHMC's primary revenue stream, contributing nearly 90% of its total tax collections. At present, unpaid property tax dues have exceeded Rs 10,000 crore, including Rs 5,500 crore from residential and commercial properties and Rs 4,500 crore from state and central government departments. Officials noted that despite several requests, government departments continue to delay payments, further worsening the crisis. To address the issue, GHMC has escalated its collection efforts.
In addition to serving notices, the corporation has sent official letters to defaulting government departments, urging them to clear outstanding dues promptly. Taxpayers are also receiving daily SMS reminders, reinforcing the urgency of compliance. Officials stressed that failure to pay taxes within the stipulated timeframe would invite stricter legal action. Despite these challenges, GHMC has collected Rs 1,470 crore in property tax revenue during the current financial year (2024-25). The civic body aims to surpass Rs 2,000 crore in collections by the end of the fiscal year, exceeding the Rs 1,917 crore collected in the previous financial year (2023-24).
To address taxpayer grievances, GHMC has launched 'Property Tax Parishkaram,' a weekly initiative designed to resolve issues related to revision petitions, assessment corrections, payment postings, online arrears adjustments, settlement of court cases, and self-assessment disputes. These grievance redressal sessions will be conducted every Saturday at respective circle offices until March 29, providing taxpayers with an opportunity to rectify discrepancies and ensure compliance. By intensifying tax recovery measures and facilitating dispute resolution, GHMC seeks to strengthen its financial stability while ensuring that defaulters meet their legal obligations.
GHMC's aggressive tax recovery efforts highlight the urgent need to address widespread non-compliance among commercial and residential property owners. With unpaid dues exceeding INR 10,000 crore, the financial strain on the civic body has hindered essential services and development projects. By issuing red notices, serving distress warrants, and engaging in legal action, GHMC aims to enforce stricter compliance. Simultaneously, initiatives like 'Property Tax Parishkaram' provide taxpayers with an opportunity to resolve disputes and clear arrears. As the corporation pushes to surpass INR 2,000 crore in collections this fiscal year, sustained enforcement and cooperation from defaulters will be crucial in stabilising its financial health.
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