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In Gurugram, the municipal authorities have identified over sixty commercial and industrial properties with property tax dues exceeding INR 1 crore each. Earlier this week, the Municipal Corporation of Gurugram (MCG) issued notices to these defaulters as part of its revenue recovery efforts. A sealing drive is expected to be enforced imminently, aiming to recover long-pending tax arrears and widen the corporation's revenue base. Meanwhile, property tax collections have remained below expectations, with MCG achieving only about 72 percent of its annual target by August despite lower projections compared to the previous fiscal year.
The Municipal Corporation of Gurugram has planned a sealing drive directed at property tax defaulters, particularly among commercial and industrial property owners. The civic body has flagged 65 properties, each owing more than INR 1 crore in property tax arrears. Notices have already been issued, and the sealing operation is scheduled to commence this week. Advertisement
Officials stated that most of the targeted units are commercial or industrial. The move forms part of MCG's ongoing strategy to recover long-pending arrears and bolster its revenue base. Property tax, along with stamp duty, serves as a primary source of income for the corporation, which is among the highest revenue-earning civic bodies in Haryana.
In the current financial year, MCG had set a property tax revenue projection of INR 275 crore, lower than the previous year's target of INR 300 crore. By August, the civic body had collected about INR 200 crore, which accounts for approximately 72 percent of its target for the year.
The municipality employs a graded rate system for property tax on residential properties based on plot size. For plots up to 300 square yards, the rate is INR 1 per square yard; for those between 301 and 500 square yards, INR 4; plots of 501 to 1,000 square yards are charged INR 6 per square yard; plots between 1,001 square yards and two acres, INR 7; and for plots larger than two acres, INR 10 per square yard.
Additionally, earlier this summer the corporation introduced artificial intelligence tools to improve revenue from property tax. The technology helps in identifying defaulters, contacting them, resolving their queries, and assisting with the payment of dues.
While enforcement is set to begin shortly, the persistent shortfall in collections compared to previous years indicates challenges in compliance and recovery mechanisms. The combination of tiered tax rates and AI-based tracking signals a multi-pronged approach, but the effectiveness of these measures will depend on consistent execution and cooperation from property owners.
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