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The New Delhi Municipal Council (NDMC) has spotted around 3,200 property tax defaulters who have arrears of INR 200 crore in the last three years. In a bid to increase tax realisation for the ongoing financial year, NDMC had sent show-cause notices and reminders, threatening coercive measures like attachment of property or sealing if payments are not cleared. The council plans to mop up INR 1,150 crore during 2024-25, higher than last year's figure of INR 1,030 crore. Till mid-February, INR 735 crore has been recovered from 9,600 taxable properties. NDMC is also paying attention to government agency pending dues and is in active contact with taxpayers through meetings and on-field tax collection activities. The initiative reflects NDMC's focus on improving compliance post-Covid and addressing revenue shortfalls caused by the pandemic.
The New Delhi Municipal Council (NDMC) has stepped up the drive to recover arrears of unpaid property tax, and it has found about 3,200 defaulters who owe a total of INR 200 crore in the last three years. The drive, which is expected to help improve collection of property tax in the current financial year, comes as NDMC has a target of collecting INR 1,150 crore in 2024-25, up from INR 1,030 crore collected during 2023-24. Advertisement
Compliance of property tax within the NDMC zone has been a historic problem, and it worsened during the Covid-19 period when economic upheavals resulted in payment and enforcement delays. In the past three years, the council has seen a reduction in property tax collections, with INR 200 crore piling up during this time. The financial stress of the pandemic and decreased enforcement efforts were factors in the increasing number of defaulters.
An NDMC official said data for the past three years was analyzed to select defaulters who had consistently disregarded payment notices. Notices and reminders have been issued, compelling these defaulters to pay their dues immediately to prevent enforcement steps like property attachment or sealing. Earlier, similar actions by NDMC had recovered substantial amounts of unpaid dues, strengthening the council's belief in this measure.
Defaulters are served with a 30-day show-cause notice under NDMC's rules, with additional reminders when necessary. If payments or replies are not received within the deadline, NDMC can impose coercive actions such as attaching properties or freezing bank accounts. Recently, 380 taxpayers received show-cause notices when they didn't pay dues even after revised assessments resolved their previous grievances. The official said that if these taxpayers don't take action within 30 days, NDMC would take stern measures, including cancelling the revised assessments and going for penalties.
NDMC oversees approximately 15,600 properties, of which 1,600 are government properties and 14,000 are private properties, of which 1,000 are exempted from taxation. As of mid-February in the ongoing financial year, INR 735 crore had already been received from 9,600 taxable properties. The property tax submissions deadline is fixed for the last week of March. In contrast to the Municipal Corporation of Delhi (MCD), which permits self-assessment, NDMC fixes property taxes according to official records and ground surveys. In order to aid taxpayers, NDMC makes objections available both online and in person. Objections are processed, and updated assessments are issued based on information submitted.
To further streamline collections, NDMC is hosting meetings with residents' welfare associations (RWAs), market bodies, and government agencies. Additionally, property tax inspectors are visiting residential areas to facilitate on-site payments. The council is also focusing on recovering long-pending dues from government departments, some of which have been outstanding for extended periods.
This proactive approach aligns with NDMC's previous enforcement strategies, which have proven effective in recovering dues. For example, in previous campaigns, enforcement actions such as property attachment had yielded noteworthy recoveries, showing the effect of strict enforcement of compliance. With NDMC striving towards its goal of INR 1,150 crore for the year, the council's dual approach of engagement and enforcement reflects its will to tackle challenges that have been faced during the pandemic and to ensure financial responsibility in its area of jurisdiction.
NDMC's aggressive strategy towards property tax defaulting reflects its determination to raise revenue collections and ensure financial prudence in its area of operation. By mixing tough enforcement tactics with taxpayer support programs, NDMC is ensuring compliance coupled with redressing grievances through new assessments and direct interaction.
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