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Gurugram property tax audit exposes major lapse in ownership records

#Taxation & Finance News#Residential#India#Haryana#Gurugram
Last Updated : 26th Jun, 2025
Synopsis

An audit by Gurugram's Municipal Corporation (MCG) uncovered that ownership details for 34 properties-owing INR 97.2 crore in property tax-are missing, making recovery legally impossible. The city's total outstanding property tax has surged to INR 280.6 crore, with additional arrears in fire tax (INR 18.4 crore) and development charges (INR 35.6 crore). Amid criticism at a recent MCG House meeting, officials vowed to retrieve records from the revenue department and pursue legal recovery. To improve collections, the MCG is conducting door-to-door surveys, hosting correction camps, and enhancing its online system to ensure accurate records and close the revenue gap.

A recent audit conducted by the joint commissioner's office of the Municipal Corporation of Gurugram (MCG) revealed a significant administrative lapse, with the civic body unable to trace ownership details for 34 properties whose combined property tax dues amount to INR 97.2 crore. The finding has raised alarm over MCG's data management and recovery processes, especially given that these tax arrears are legally unrecoverable without verified ownership records.


According to the audit, the total outstanding property tax in the city has reached INR 280.6 crore. In addition, fire tax arrears stand at INR 18.4 crore, while development charges amounting to INR 35.6 crore also remain unpaid. Despite having collected INR 232.9 crore in property tax during the previous financial year, the MCG has not been able to bridge the gap between billed amounts and actual recoveries. For the current fiscal year, the corporation has set a target of INR 275 crore.

The gravity of the situation prompted strong criticism during a recent MCG House meeting. In response, MCG officials have acknowledged the issue and stated that efforts are underway to retrieve the necessary details of the 34 unidentified properties from the revenue department. Officials are also exploring legal avenues and plan to issue recovery notices to high-value defaulters.

The MCG has also been conducting property tax correction camps to address discrepancies that arose after a large-scale update to its records in 2022. That exercise had triggered close to 3.6 lakh objections from property owners, of which over 11,000 cases remained unresolved as of early this year. By late March, that number had been brought down to approximately 3,100.

To streamline data accuracy and plug further revenue leaks, the MCG is relying on multiple approaches including door-to-door surveys, corrections at the zonal level, and improved use of its online portal for generating no-dues certificates. The civic body has reiterated that maintaining updated and accurate property records is now a top priority to support both enforcement and service delivery.

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