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Nagpur's stamp duty collections for the fiscal year ending March 2025 fell 7% short of the target, collecting INR 1,675 crore against the projected INR 1,800 crore. The shortfall is linked to a slowdown in real estate deals and modest 4-5% increases in ready reckoner rates. Rural collections also missed targets by 3%. Despite this, officials are hopeful after recent ready reckoner hikes of up to 10% in some areas, which could boost future revenues. Nagpur Municipal Corporation faces further financial strain from undelivered property tax bills and low tax recovery, leading to a penalty waiver scheme. Improving collection efficiency is vital for the city's finances and infrastructure development.
Nagpur's stamp duty collections for the fiscal year ending March 2025 have fallen 7% short of the government's target. The city collected INR 1,675 crore against a projected INR 1,800 crore. Officials attribute this shortfall to a slowdown in real estate transactions and modest hikes in ready reckoner rates over recent years, which only saw increases of 4% to 5%. Advertisement
In rural areas beyond municipal limits, collections totaled INR 559 crore, falling 3% below the revised target. Despite upward revisions in rural targets, they remained unmet, reflecting broader challenges in the real estate sector.
However, officials are optimistic about the future. The current fiscal year has seen ready reckoner rates rise by up to 10% in certain pockets, a move expected to boost stamp duty collections in FY 2025-26.
This downturn in stamp duty collections comes amid other financial challenges for Nagpur's civic bodies. Earlier this year, the Nagpur Municipal Corporation (NMC) faced a significant setback when over 1.8 lakh property tax bills were returned undelivered, hindering revenue collection efforts.
Furthermore, as of January 2025, the NMC had recovered only INR 194.47 crore in property taxes, significantly below its INR 429 crore target, leading to a substantial revenue shortfall. To bridge this gap, the NMC launched an amnesty scheme offering an 80% penalty waiver on accumulated interest and penalties, aiming to recover INR 850 crore in arrears.
While recent hikes in ready reckoner rates offer a glimmer of hope for improved collections in the coming fiscal year, systemic issues such as undelivered tax bills and underwhelming property tax recoveries highlight the need for more robust and efficient revenue collection mechanisms. Addressing these challenges is crucial for the city's financial health and its ability to fund essential infrastructure and services.
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