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Hyderabad civic body seals Katriya Hotel over INR 6 crore dues as property tax enforcement intensifies

#Law & Policy#India#Telangana#Hyderabad
Hyderabad News Desk | Last Updated : 30th Mar, 2026
Synopsis

The Greater Hyderabad Municipal Corporation (GHMC) has sealed Katriya Hotel and Towers in Somajiguda over pending property tax dues of approximately INR 6.16 crore, with arrears dating back to 2017. The action forms part of a broader enforcement drive targeting high-value defaulters across the city. Despite a 90% waiver on interest under an ongoing settlement scheme, the dues remained unpaid. Alongside the hotel, five additional commercial properties were sealed for non-payment. Civic authorities have issued nearly two lakh demand notices across Hyderabad and stepped up recovery measures under the Revenue Recovery Act. The move reflects mounting pressure on municipal bodies to improve tax compliance and strengthen revenue collections.

The Greater Hyderabad Municipal Corporation (GHMC) has sealed Katriya Hotel and Towers in Somajiguda, Hyderabad, over outstanding property tax dues of approximately INR 6.16 crore, with the enforcement action carried out in the past week following prolonged non-payment since 2017. The civic body initiated the sealing through designated warrant teams as part of a wider crackdown on major property tax defaulters across the city.


Officials stated that the hotel is liable to pay nearly INR 75 lakh annually in property tax, but accumulated arrears over several years led to the current enforcement. Even after offering a 90% waiver on interest under a one-time settlement scheme, the dues remained unsettled, prompting authorities to proceed with sealing the premises. The property is expected to remain sealed until the outstanding amount is cleared in full.

The action is part of a broader municipal drive to recover pending property tax dues from high-value defaulters. Alongside the hotel, GHMC sealed five other establishments, including educational, commercial, and retail properties, with outstanding dues ranging from approximately INR 17.9 lakh to INR 1.28 crore. Authorities indicated that repeated notices had been issued to these entities, but compliance was not achieved, necessitating coercive action.

The enforcement measures are being carried out under provisions of the Revenue Recovery Act, with distress warrants issued to defaulters and warrant officers deployed across all administrative circles. The civic body has directed deputy commissioners to intensify recovery efforts, including attachment and sealing of properties where required.

Data from the municipal administration indicates a significant gap in tax compliance. Out of approximately 28.8 lakh assessed properties in Hyderabad, nearly half have not cleared their dues for the current financial year. Against a total demand of around INR 6,387 crore, collections so far stand at approximately INR 2,200 crore, highlighting the scale of pending recoveries.

Over the past few weeks, GHMC, along with other urban local bodies in the region, has issued nearly two lakh demand notices to property owners with outstanding payments. The intensified enforcement drive comes as civic authorities seek to improve revenue realisation before the close of the financial year, with daily monitoring of collections and targeted action against chronic defaulters.

Officials have urged property owners to utilise the ongoing interest waiver scheme to regularise dues, warning that continued non-compliance could lead to further legal action, including seizure of assets. The ongoing crackdown signals a stricter approach to municipal revenue enforcement, particularly for large commercial properties where arrears have accumulated over extended periods.

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