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The Municipal Corporation of Manesar (MCM) has intensified measures to curb revenue loss caused by residential properties operating as paying guest (PG) accommodations, hostels, or small commercial establishments without proper registration. Owners must declare the actual use of their properties or face penalties, including retrospective tax reassessment, fines, and possible disconnection of essential services. Inspection teams will verify properties on the ground to ensure records reflect reality. Voluntary disclosure before inspections will be accepted, but late declarations after verification will not shield defaulters from punitive action.
The Municipal Corporation of Manesar has launched a strict enforcement drive against residential properties being used commercially without updating their official status. The action targets flats functioning as PG accommodations, hostels, coaching centres, or other small commercial enterprises while still being classified as residential in civic records. Officials have noted that this mismatch between actual usage and municipal records has been causing significant revenue losses for the corporation. Advertisement
Property owners and occupiers are now required to self-declare the actual usage of their properties. The joint commissioner explained that many properties in Manesar have been converted into PGs or commercial setups without updating the corporation, resulting in lower property taxes compared with commercial rates. He highlighted that this deliberate under-reporting amounts to tax evasion and affects civic revenue.
To ensure compliance, MCM has set up inspection and verification teams that will carry out on-site assessments, replacing the largely paper-based monitoring system. Properties found to have discrepancies will face strict measures under the Haryana Municipal Corporation Act, 1994, and related rules. Penalties include retrospective reassessment of property taxes, fines of up to 100% of the differential amount with interest, recovery proceedings, and even potential prosecution. Essential services like water supply, sewer connections, and waste collection may be suspended for defaulters, and premises could be sealed.
Authorities stressed that voluntary self-declaration before inspection will be considered under the law, providing property owners an opportunity to regularize their properties. However, any declaration after inspection will not protect them from punitive action.
The drive comes as Manesar, particularly the IMT Manesar industrial area, attracts a large number of workers, students, and young professionals seeking PG accommodations. With many properties operating commercially without registration, the civic body aims to align tax records with the actual usage of properties and secure lost revenue. Officials emphasized that the move will strengthen municipal finances while ensuring that residential properties used commercially contribute fairly to local taxes.
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