NAGPUR: State govt departments continue to exacerbate Nagpur Municipal Corporation (NMC)’s property tax collection woes. From regional transport office owing a staggering Rs 25.39 crore to police commissionerate’s unpaid dues of Rs 40.20 crore for residential quarters and police stations, and the deputy director of sports complex owing Rs1 2.87 crore, these institutions have emerged as some of the biggest property tax defaulters. The irony? While citizens and businesses are held accountable for non-payment, these entities failed to meet civic obligations, leaving the NMC scrambling to fund basic amenities.NMC’s property tax department data reveals that total property tax arrears reached a whopping Rs850.1 crore, with govt departments alone accounting for Rs83.74 crore. Adding to the burden, the current financial year’s outstanding dues from these departments stand at Rs10.06 crore, bringing their total liability to Rs93.81 crore.
Govt educational institutions, hostels, and healthcare centres collectively contribute to the mounting arrears. For instance, Government Polytechnic at Sadar has dues of Rs4.6 crore, while Public Health Laboratory in Sadar owes Rs31.2 lakh.
As of December 31, 2024, a total of 2,86,399 property owners accumulated a backlog of Rs850.1 crore in property taxes, with an additional Rs770.45 crore charged as interest and penalties.
To recover outstanding property tax, NMC rolled out an amnesty scheme by waiving 80% of Rs770 crore interest and penalties for tax defaulters. The scheme was introduced from January 1 this month and will continue till March 31, 2025.
The Maharashtra Municipal Corporations Act of 1949 mandates imposition of penalties or interest if property tax is not paid within the prescribed time. Recovery actions such as attachment or seizure of movable or immovable property can also be enforced, followed by auction of properties. All 10 zonal offices intensified drive to improve property tax collection and started issuing warrants, attaching properties but no such action has been initiated against any of the govt departments.
“This is a serious issue. While we send repeated notices to these departments, payments are delayed due to bureaucratic hurdles,” an NMC official said. The issue also raises concerns about the financial discipline of govt entities. When govt departments default on taxes, it sets a bad precedent for individuals and businesses, making it difficult for the NMC to enforce tax compliance. Tax collection is a critical lifeline for urban development, and tax default severely impedes the corporation’s ability to deliver quality public services.
Some Defaulters
*Offices—Total outstanding NMC tax*
Police Commissioner—34,58,55,527
Dean Ayurvedic College & Boys Hostel—24,93,727
Principal Govt. Polytechnic—86,80,654
Tehsildar Tehsil Office (rural)—2,21,99,364
Transport Officer RTO (rural)—25,39,17,471
Dy Director Krida Sankul/Group—12,87,38,424
Dy Director Boys & Girls Hostel—52,84,459
Police Training School—4,25,21,856
Police Hostel—4,13,32,232
Police Rani Durgavati Hostel—2,07,72,540
Principal Hotel Management—1,72,72,100
Dy Commissioner Wing-B—60,41,706
Dy Commissioner Caste Verification—65,16,335
