The Nagpur Municipal Corporation (NMC) is set to launch a city-wide AI-driven property survey across all ten zones-its first since 2016-to improve property tax accuracy and address inefficiencies in manual record updates. A pilot in Laxmi Nagar revealed 2,000 new properties and 7,000 with unrecorded structural or usage changes, highlighting gaps in the existing system. The new survey will focus solely on built-up properties, combining AI mapping with door-to-door verification to assess real-time changes. With property tax arrears exceeding INR 900 crore, the initiative aims to enhance revenue, ensure fair valuations, and promote transparency in urban governance. The survey rollout is expected early next financial year.
The NMC is preparing to conduct a comprehensive survey of constructed properties across all ten of its zones, having last undertaken a full review in 2016 despite government norms recommending one every five years. The move signals an acknowledgment that manual updating of property tax assessment records has been inefficient amid rapid urban development.
In a pilot carried out in the Laxmi Nagar zone, AI-driven tools analysed property data and cross-matched it against the existing database. The survey processed about 9,000 entries: of those, 2,000 were new properties and 7,000 had undergone structural changes or usage modifications not reflected in NMC's records. To validate the AI findings, tax inspectors physically surveyed 380 randomly selected properties. They found 12 entirely new constructions and 215 properties that had added floors, extended space, or changed use from residential to commercial without a corresponding update in tax records.
Under the current property tax system, the NMC determines tax by calculating the taxable value of land and buildings using parameters such as latitude-longitude coordinates, type and age of the construction, and nature of usage. However, with rapid urbanisation and continuous changes at property level, the manual updating process has proved insufficient.
The upcoming city-wide survey will exclude open plots and focus purely on built-up properties. It will combine AI mapping and data collection with door-to-door inspections to finalise accurate taxable property values. NMC officials anticipate that this AI-backed mechanism will capture real-time property changes, enable timely reassessments, and significantly boost the civic body's annual revenue-property tax being the largest income source for the NMC. Currently the municipality faces arrears exceeding INR 900 crore, excluding penal interest.
Tendering and technical framework finalisation are underway, and the new survey is expected to begin early in the next financial year. Officials say the updated database will not only result in fairer tax assessments but will also improve transparency and financial discipline within the municipal system.
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