Nagpur Municipal Corporation (NMC) has recovered only a small fraction of its total property tax dues of INR 938.7 crore for FY 2024-25. While over 4.6 lakh properties are in default, just 106 were auctioned. Recovery through warrants, attachments, and notices also remained limited. Officials pointed to slow enforcement and low compliance. Even with partial collections, NMC has fallen short of the financial demands required to maintain civic services.
Nagpur Municipal Corporation (NMC) is facing a significant revenue gap as property tax arrears have crossed INR 938.7 crore in the ongoing financial year. Despite this, the civic body has managed to recover only INR 300 crore so far, which is below its target of INR 325 crore. In the previous financial year, NMC had collected INR 318 crore in property tax.
Out of around 6.87 lakh registered properties, nearly 4.6 lakh have defaulted on payments. In response, NMC issued 13,224 warrants to recover dues amounting to INR 126.35 crore. From these, 11,613 warrants were successfully served, and action was taken against 5,143 property owners, resulting in a recovery of INR 34.86 crore.
The civic body also attached 3,519 properties to recover dues worth INR 30.60 crore. Additionally, notices were issued for 736 properties, with pending tax dues totalling INR 16.08 crore.
However, when it came to auctions, a final step in recovery, only 106 properties were listed. The estimated recovery from these auctions stood at just a little over INR 2 crore. These included 67 properties in Mangalwari zone (INR 1.39 crore), 27 in Satranjipura zone (INR 16.13 lakh), and 13 in Lakadganj zone (INR 55.55 lakh).
Even with other recovery measures, a majority of the defaulters have not faced auction or strict follow-up. Civic officials have admitted that the enforcement is falling short of expectations and needs to be improved. While they have managed to make partial recoveries from attachments and notices, the scale of tax evasion remains high.
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