Gurugram: Municipal Corporation Fails to Address Over 2,000 Property Tax Defaulters
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Synopsis
The Municipal Corporation Gurugram has not taken action against 2,000 property tax defaulters, failing to issue notices for three years while accumulating dues of Rs 400 crore. Despite creating new property IDs, tax recovery efforts remain stalled.
Key Takeaways
- Over 2,000 property tax defaulters in Gurugram.
- Outstanding property tax dues amount to Rs 400 crore.
- No notices issued to defaulters in three years.
- Survey increased property IDs from 3.80 lakh to 6.92 lakh.
- Projected income for 2024-25 significantly reduced.
Gurugram, March 30 (NationPress) The Municipal Corporation Gurugram (MCG) has not taken necessary actions against over 2,000 property tax defaulters in the city.
According to sources, the corporation has not issued any notices to property tax defaulters for the past three years, despite having a policy to recover property tax by sealing and auctioning the properties of those who default.
They reported that the corporation has outstanding property tax dues of approximately Rs 400 crore against 2,000 individuals that have remained unpaid for over five years across all four zones of the Municipal Corporation.
Sources indicated that the corporation should issue notifications annually to recover the property tax and should take measures such as sealing properties and conducting auctions, yet since 2020, no notices have been sent to the defaulters.
In 2020, the Municipal Corporation engaged a private agency to survey the city’s properties. Previously, the corporation had IDs for 3.80 lakh properties, but post-survey, the number has increased to 6.92 lakh properties.
“In the span of four years, the corporation has created new property IDs; however, there has been no increase in property tax revenue. The officials appear to be neglecting property tax recovery, which remains stalled at Rs 250 crore,” sources stated.
In 2019, deposits in the corporation’s accounts reached Rs 1100 crore, which has now dwindled to Rs 300 crore.
Sources explained that a significant factor for this decline is the diminishing income of the corporation, which is leading to the depletion of deposited capital.
“Significant funds are being allocated to the construction of roads, flyovers, a medical college, buildings, and parking facilities, yet income from various sources has decreased. Due to low income coupled with high expenditure, the corporation's treasury is depleting,” sources added.
Additionally, the Municipal Corporation transferred around Rs 400 crore to other departments from 2018 to 2020, but this was done solely upon government directives.
“For the fiscal year 2024-25, the corporation aimed for an income target of Rs 1550 crore, but it has only managed Rs 940 crore. Furthermore, while Rs 1495 crore was allocated for spending, only Rs 1020 crore was used on various development projects,” sources further remarked.
Meanwhile, Ashok Kumar Garg, the MCG Commissioner, stated that action will be initiated shortly against property tax defaulters.
“Officials have been instructed to begin sending out notices starting next month,” he mentioned.
