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Ranchi Municipal Corporation is facing a significant revenue shortfall, with over 70,000 property owners defaulting on holding tax payments, resulting in a gap of around INR 20 crore. Despite setting a target of INR 83 crore for the previous financial year, only about INR 80.64 crore was recovered. To address the deficit, the civic body is intensifying enforcement efforts, including water and waste service disconnections, reassessment of vacant plots, and identification of misused properties. A 10% rebate is also being offered for timely payments made in the current quarter, alongside digital and doorstep payment services to encourage compliance.
The Ranchi Municipal Corporation (RMC) is grappling with a serious revenue deficit as more than 70,000 property owners have defaulted on holding tax payments, leading to an estimated shortfall of INR 20 crore in its annual tax collection target. The civic body had aimed to collect INR 83 crore during the previous financial year, but managed to recover only around INR 80.64 crore. Advertisement
Officials from the municipal office revealed that several of these dues have remained unpaid for multiple years, dating back as far as the 2019-20 financial year. Despite repeated reminders and notices, the compliance rate has remained low, putting pressure on the current budget cycle.
In response to the growing backlog, the RMC has rolled out a series of enforcement measures. These include the disconnection of water supply and garbage collection services for persistent defaulters. Field officers have been deployed ward-wise to identify such cases, with specific attention being given to properties registered as residential but currently being used for commercial activities.
To improve compliance, the civic body is offering a 10% rebate for those who clear their dues during the first quarter of the financial year. This scheme is part of a broader effort to encourage early payments and reduce the accumulation of arrears. Alongside this, RMC is promoting digital and doorstep payment options to make the process more accessible for residents.
A major component of the recovery strategy also includes reassessing over 13,000 vacant land parcels across the city. These plots are being brought under a fresh valuation process to ensure accurate taxation. In parallel, the corporation is scrutinising tax records to pinpoint properties that have been under-reported or incorrectly classified, especially where commercial activities are being carried out in properties listed as residential.
The civic administration had previously flagged these concerns during a campaign launched in the past quarter. At the time, officials had stated their intention to identify and penalise tax evasion by revising tax categories for properties being used beyond their registered scope. That effort laid the groundwork for the current crackdown.
The revenue from holding tax is a vital component of RMC's budget, supporting essential services such as sanitation, road maintenance, and water supply. With such a large chunk of revenue remaining unrealised, officials are now under pressure to bridge the gap before it begins affecting civic operations more severely.
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