NMC has 60 days Deadline to Collect Rs. 235 crore Property Tax

The Nagpur Municipal Corporation (NMC) has collected Rs. 194.47 crore in property tax as of January 29, falling significantly short of its Rs. 429 crore target. This leaves an outstanding balance of Rs. 234.52 crore, further straining the civic body’s already fragile financial condition.

The slow pace of tax recovery forced NMC to secure a Rs. 500 crore loan to meet its share of funding for various state and central government-backed infrastructure projects. 

Among the ten municipal zones, Laxmi Nagar (Rs. 57.14 crore), Hanuman Nagar (Rs. 51.02 crore), and Mangalwari (Rs. 53.84 crore) had the highest property tax demand.

However, overall collections remained below expectations, with Ashi Nagar (Rs. 35.07 crore), Lakadganj (Rs. 27.34 crore), and Hanuman Nagar (Rs. 26.48 crore) reporting the highest outstanding dues. 

This revenue shortfall is a pressing concern as NMC struggles to finance ongoing and planned development projects. To accelerate tax collection, the civic body introduced an amnesty scheme on January 1, aiming to recover Rs. 850 crore in outstanding property tax dues. The scheme offers an 80% waiver on Rs. 770 crore in accumulated interest and penalties, allowing defaulters to settle their dues with reduced financial burden. 

The initiative is intended to enhance compliance and improve tax revenue in the final quarter of the fiscal year. NMC commissioner and administrator Abhijeet Chaudhari emphasized the urgent need to boost property tax collection to sustain essential civic services.

The financial crisis is already affecting infrastructure projects, road maintenance, sanitation, and other municipal functions, raising concerns among residents and city planners about the administration’s ability to meet future urban demands.