Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Greater Hyderabad Municipal Corporation (GHMC) faces a severe financial crunch as property tax arrears from residents and government departments have piled up to INR 5,500 crore. Despite being the primary source of revenue, nearly 7 lakh property owners have failed to clear dues over the past eight years. The civic body has issued 4 lakh distress warrants to defaulters but is hampered by the absence of a one-time settlement scheme from the state government. Government departments, including the secretariat and South Central Railway, owe INR 4,400 crore, with dues dating back to 2001. GHMC aims to recover pending taxes through door-to-door collection drives, legal measures, and frequent reminders.
The civic infrastructure in Hyderabad is grappling with challenges largely due to unpaid property taxes. According to the Greater Hyderabad Municipal Corporation (GHMC), residents collectively owe INR 5,500 crore in property tax dues, contributing significantly to the financial crunch the civic body is experiencing. Records reveal that over the past eight years, nearly 7 lakh property owners in the city have failed to clear their dues. Advertisement
Currently, GHMC has approximately 17 lakh taxpayers in its jurisdiction, including 13 lakh residential and 4 lakh commercial property owners. Property tax serves as the main source of income for the municipal corporation, accounting for nearly 90% of its total tax revenues.
With less than 50 days left in the financial year, GHMC is under pressure to recover outstanding taxes. However, the absence of a one-time settlement (OTS) scheme, which could provide relief on accumulated interest arrears, has deterred many taxpayers from clearing their dues. The municipal body has already issued 4 lakh distress warrant notices under Section 269 of the GHMC Act to compel defaulters to pay.
Distress warrants empower GHMC to confiscate and auction properties of tax defaulters. Officials stated that door-to-door visits by bill collectors and tax inspectors are being conducted to encourage timely payments. Property owners can pay taxes through citizen service centres, online platforms, e-Seva centres, or directly to bill collectors.
In addition to residential and commercial property owners, government departments are among the major defaulters. Over the past decade, approximately 60 government entities, including the secretariat, roads and buildings (R&B) department, revenue, health and medical departments, prohibition, and South Central Railway, owe INR 4,400 crore in taxes.
Some of these dues date back to the united Andhra Pradesh era. For instance, the secretariat has outstanding dues since 2001, while the R&B department's arrears have remained unsettled since 2009. The state government has not allocated any budget to cover property tax for government buildings under GHMC.
A senior GHMC official mentioned that letters are being sent to various government offices to resolve these dues. The official further shared that several departments have expressed willingness to settle their arrears, and efforts are underway to ensure both state and central government offices clear their pending amounts. Additionally, GHMC has been sending daily SMS reminders to taxpayers to expedite payments.
Meanwhile, GHMC has managed to collect INR 1,460 crore in property tax so far this financial year. However, it aims to surpass last year's collection of INR 1,917 crore and achieve its target of over INR 2,000 crore for the current fiscal.
Hyderabad's civic infrastructure challenges highlight the pressing need for residents and government entities to clear outstanding property tax dues. With nearly 90% of GHMC's revenue relying on property tax, the unpaid arrears significantly impact the city's developmental efforts. The absence of a one-time settlement scheme further complicates the recovery process, leaving both residential and government defaulters unmotivated to clear their dues. While GHMC has taken proactive measures like distress warrants, door-to-door collections, and regular reminders, achieving its fiscal target requires collective action. Clearing these dues is vital not just for GHMC's financial health but also for improving civic services across Hyderabad.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
