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The Ranchi Municipal Corporation (RMC) has detected widespread misreporting of property details during a verification drive aimed at improving holding tax collections. Physical inspections revealed that many residential, commercial and institutional properties had declared smaller built-up areas or incorrect usage categories to lower tax liabilities. Hospitals, offices and properties with basements were among those found under-assessed. The civic body has started correcting records, recalculating dues and issuing notices under the Jharkhand Municipal Act, warning of penalties for non-compliance and continued under-reporting.
The Ranchi Municipal Corporation has uncovered extensive irregularities in property tax declarations following a citywide physical verification exercise carried out as part of its effort to strengthen holding tax collections. The exercise revealed that a large number of property owners had either under-reported built-up areas or misclassified the usage of their properties, leading to significantly lower tax payments.
Inspections conducted by RMC teams across multiple wards showed that several commercial establishments were registered as residential properties. In many cases, property owners had declared only a portion of the actual built-up area, excluding additional floors, basements or functional spaces that were actively in use. These discrepancies were found across residential buildings, office complexes and institutional properties.
Officials noted instances where hospitals were paying tax on areas much smaller than their actual operational footprint. Office buildings were also found to have under-reported commercial usage, while basements rented out for commercial activity were often missing from official records. Such omissions resulted in incorrect assessment of holding tax and loss of municipal revenue.
The civic body has initiated the process of updating property records based on the verified data and recalculating tax dues accordingly. Notices have been issued to concerned property owners, directing them to revise their declarations and clear pending amounts. The RMC has stated that penalties and legal action may follow if discrepancies are not rectified, as provided under the Jharkhand Municipal Act.
Property tax forms a major source of revenue for urban local bodies and is used to fund essential civic services such as road maintenance, sanitation, water supply and public infrastructure. RMC officials have reiterated that accurate self-assessment is mandatory and that continued misreporting will not be tolerated.
The corporation plans to continue physical inspections in other parts of the city to ensure uniform compliance and prevent further revenue leakage.
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