Today: Apr 03, 2025

Nagpur civic body falls short of Rs ₹325 crore property tax target, ET RealEstate

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21 hours ago


<p>representative image</p>
representative image

NAGPUR: The Nagpur Municipal Corporation (NMC) recorded mixed results in revenue recovery for the 2024-26 financial year. While property tax collections fell slightly short of the target, the estate department significantly exceeded expectations.

Despite implementing an ambitious amnesty scheme to recover outstanding dues, the property tax department collected ₹306 crore, achieving 94% of its target of ₹325 crore. The amnesty scheme, which ran from January 1 to March 31, 2025, offered property owners an 80% waiver on penalties and interest to encourage the payment of outstanding dues. At the end of 2024, 2,86,399 property owners owed a total of ₹850.1 crore in taxes, along with ₹770.45 crore in fines and interest. However, only 1,03,842 owners—approximately 36.26%—availed of the scheme, generating ₹96.92 crore in revenue.

A key challenge for the property tax department was the substantial backlog of dues from government-owned properties, particularly the city police, which defaulted on ₹34 crore. To address this, the NMC is considering adjusting ₹12 crore—requested by the police department for personnel deployment during anti-encroachment drives—against its unpaid property tax dues. This adjustment could effectively reduce the outstanding amount to ₹22 crore.

In contrast, the estate department outperformed expectations, collecting ₹18.26 crore, more than double its target of ₹8.95 crore. This success was largely due to leasing municipal properties and intensified action against encroachments.

However, other departments underperformed. The market department and sky sign department failed to meet their revenue targets, while the Local Body Tax (LBT) department recorded the most significant shortfall, recovering only ₹0.54 crore against a target of ₹2 crore.

  • Published On Apr 2, 2025 at 01:31 PM IST

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