Nagpur: With just 60 days left in the financial year, the cash-strapped Nagpur Municipal Corporation (NMC) faces an uphill battle to meet its ₹429 crore property tax target. As of January 29, the civic body has managed to recover ₹194.47 crore, leaving a significant shortfall of ₹234.52 crore, further exacerbating its fragile financial position.
The sluggish tax recovery forced NMC to take a ₹500 crore loan to fulfil its share of funding for State and Central government-backed infrastructure projects. Among the ten municipal zones, Laxmi Nagar (₹57.14 crore), Hanuman Nagar (₹51.02 crore), and Mangalwari (₹53.84 crore) had the highest property tax demand. However, tax collection remained subpar, with Ashi Nagar (₹35.07 crore), Lakadganj (₹27.34 crore), and Hanuman Nagar (₹26.48 crore) accounting for the highest outstanding dues.
Gold Rate
Saturday 01 Feb. 2025
To accelerate revenue collection, NMC introduced an amnesty scheme on January 1, targeting the recovery of ₹850 crore in property tax arrears. The scheme offers an 80% penalty waiver on ₹770 crore worth of accumulated interest and penalties, providing defaulters an opportunity to settle dues at a lower cost. This initiative is expected to boost compliance and generate much-needed revenue in the final quarter of the fiscal year.
NMC Commissioner and Administrator Abhijeet Chaudhari emphasized the urgency of improving property tax collection to sustain essential civic services. The financial crunch has already impacted infrastructure projects, road maintenance, and sanitation, raising concerns among residents and city planners about the administration’s ability to meet future demands.
With only two months left, the success of the amnesty scheme remains uncertain. While officials anticipate a surge in payments towards the deadline, past trends suggest many defaulters delay until the last moment. If recoveries fall short, NMC may be forced into deeper financial distress, leading to further borrowing or potential service cutbacks.
Despite property tax being the civic body’s primary revenue source, collection efficiency remains a challenge. Officials have hinted at stricter enforcement measures post-March, including legal action, property attachments, and auctioning defaulters’ properties to ensure compliance.
