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Raised property tax recovery target too steep for Ludhiana civic body, ET RealEstate


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LUDHIANA: The municipal corporation (MC) is finding it hard to recover property tax dues, having collected only ₹130 crore, so far, against an ambitious target of ₹200 crore. With the financial year nearing its end, officials now consider strict enforcement measures, including a sealing campaign, to bridge the gap.

For the current fiscal, the initial property tax recovery target was ₹140 crore. However, after MC commissioner Aaditya Dachalwal took charge, the target was raised to ₹200 crore. Officials claim to have made significant efforts to maximize recovery but faced obstacles due to the MC elections, which hampered collection efforts. Despite the elections, the local bodies department did not provide people with any relief on pending tax dues.

Officials consider strict action

With time running out, officials say stringent action against defaulters is the only remaining option. However, they still await formal approval from senior authorities. Meanwhile, notices and reminders are being sent to defaulters, and field teams have been deployed to identify major tax evaders and those who underreported their dues. Officials believe targeting these cases will yield higher recoveries.

Political hurdles

Sources within the department suggest that officials are reluctant to exceed ₹140 crore in collections, fearing an increased target for the next fiscal year. Additionally, political instability has hindered the launch of a sealing drive against major defaulters, as the civic body has yet to receive a green light from senior leadership.

Mayor Inderjit Kaur held discussions recently with commissioner Dachalwal regarding the issue, and regular review meetings are being conducted. However, officials acknowledge that achieving the ₹200 crore target is highly unlikely. The financial crunch has added urgency to the collection efforts, as property tax revenue is crucial for paying municipal employees amid the civic body’s ongoing financial crisis.

Officials remain hopeful

Municipal corporation superintendent Vivek Verma remains optimistic, emphasising the efforts being made. “We still have a-month-and-a-half months left, and our teams are working hard to recover pending amounts. We have already achieved ₹130 crore and are hopeful of further progress,” Verma said. With financial stability at stake, the pressure is mounting on Ludhiana’s civic authorities to intensify recovery efforts before the financial year ends.

  • Published On Feb 12, 2025 at 12:00 PM IST

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