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The New Delhi Municipal Council (NDMC) has intensified its crackdown on property tax defaulters, attaching 13 properties in Connaught Place due to unpaid dues. Despite prior notices, owners failed to respond, prompting action under Section 100(1) of the NDMC Act. Five owners have since paid INR 6 crore, but de-attachment requires a written commitment to clear all dues by March 31. NDMC aims to recover INR 200 crore from 3,200 defaulters. Property owners dispute the "comparable rent method" for tax assessment, calling for a unified tax policy aligning NDMC with MCD's "unit area method" for fairness and transparency.
The New Delhi Municipal Council (NDMC) has recently ramped up its efforts to address property tax defaulters with significant enforcement actions. In a two-day operation, the council attached 13 properties located in Connaught Place, a prominent commercial area, due to non-payment of property taxes. The affected properties include a variety of establishments such as restaurants, clothing shops, and accessory outlets spread across blocks A, B, D, and E. These measures came after repeated notices were served to property owners and occupiers, granting them a month to respond. However, when no response was received, the council invoked Section 100(1) of the NDMC Act, which allows for property attachment as a means of enforcing payment. Advertisement
Following the attachment, five of the affected property owners promptly cleared a total of INR 6 crore in pending dues. However, the NDMC has made it clear that these properties will not be de-attached until the owners submit a written assurance to clear all outstanding dues by March 31. The NDMC has also offered the opportunity for property owners to review their assessment records if they dispute the calculated amounts. This move is part of a broader strategy to increase property tax collections, particularly as the council aims to recover outstanding dues, estimated at around INR 200 crore, from approximately 3,200 defaulters over the past three years. To facilitate this, the NDMC has announced extended working hours, keeping property tax collection counters open on weekends in March 2025.
A significant point of contention among property owners in Connaught Place is the NDMC's use of the "comparable rent method" for tax assessments. Many property owners, including those who operate businesses in the area, have argued that this method is flawed and not transparent. They have raised concerns about the fairness of this approach and have suggested that it leads to inflated property tax assessments, especially when compared to the "unit area method" used by the Municipal Corporation of Delhi (MCD). Traders have pointed out that this disparity results in higher taxes for businesses in Connaught Place, which they argue is detrimental to their profitability.
This debate over the method of tax calculation has highlighted the lack of uniformity in tax policies across Delhi's municipal bodies. The MCD and NDMC, despite both operating within the same city, apply different tax calculation methodologies, creating confusion among property owners. The "unit area method," which is based on the size of the property, is seen by many as a simpler and more transparent way to determine property taxes. In contrast, the comparable rent method, which relies on the rental value of similar properties, has been criticized for being too subjective and prone to manipulation.
In response to the NDMC's ongoing efforts, the New Delhi Traders' Association has called for a unified tax policy across the city. They have requested the NDMC to align its tax assessment methods with the MCD's unit area method to create a more consistent and fair system for all property owners.
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