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Nagpur Municipal Corporation has seen a drop in property tax collections despite an increase in the total number of properties. Around 3.76 lakh property owners have not paid their dues, affecting one of the civic body's main revenue sources. Collections remain lower than last year even as targets were raised. Recovery work was also impacted due to election duties, while some zones showed weak compliance. The situation highlights gaps in enforcement and property tracking, even as the civic body continues to explore rebates and stricter recovery measures.
The Nagpur Municipal Corporation (NMC) has recorded lower property tax collections this year, even though the number of registered properties in the city has increased. The civic body has collected around INR 252.66 crore so far, compared to nearly INR 306 crore during the same period last year, showing a clear decline in revenue inflow.
Out of approximately 8.36 lakh properties in the city, only about 4.60 lakh property owners have paid their property tax. Nearly 3.76 lakh properties remain either in default or are yet to be fully brought under the tax system. This gap continues to affect the financial position of the civic body, as property tax is one of its key revenue streams used for basic infrastructure and services.
The shortfall becomes more significant when compared to the targets set by the civic administration. The initial collection target was fixed at INR 350 crore and was later increased to INR 400 crore. However, the current pace of recovery indicates that achieving this revised target may be difficult without stronger intervention.
Officials have indicated that recovery work was affected due to election-related responsibilities. During this period, staff involved in tax collection were assigned to election duties, which slowed down field-level recovery efforts. As a result, monthly collections dropped compared to the same period last year, especially during key collection months.
Zone-wise performance shows uneven recovery across the city. Areas such as Laxmi Nagar and Dharampeth have reported relatively better compliance, with a significant share of property owners clearing their dues. On the other hand, zones like Ashi Nagar and Nehru Nagar continue to lag despite having a large number of properties. Other areas including Satranjipura, Gandhibagh and Lakadganj fall in the mid-range, pointing to broader issues in consistent enforcement and monitoring.
A major portion of the total revenue has come directly from property tax collections, while smaller contributions have come from other related charges such as mutation fees and digital payment channels. However, the overall collection trend suggests that current efforts may not be sufficient to bridge the gap between targets and actual recovery.
To improve collections, the civic body has been working on incentive-based measures such as rebates for early payments. In previous instances, such schemes have helped increase participation, with a section of property owners clearing dues to avail benefits. At the same time, the administration has also relied on enforcement actions in the past, including issuing notices, attaching properties and initiating auctions in cases of long-pending dues. These measures indicate a mix of incentives and strict recovery methods being used over time.
The issue of unpaid property tax has been recurring in Nagpur, with earlier recovery drives also facing similar challenges in bringing all properties into the tax net. Gaps in property identification, ownership records and compliance tracking have continued to impact collections, even as the overall property base has grown steadily.
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