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The Ludhiana Municipal Corporation is grappling with a significant gap in property tax recovery, with nearly one lakh property owners yet to clear dues even as the financial year draws to a close. The civic body has set a collection target of around INR 160 crore, with internal expectations rising to INR 180 crore, but collections have reached only about INR 147 crore so far. Officials have extended working hours and intensified field-level efforts to bridge the gap. The administration has also warned of penalties and interest for non-payment, while acknowledging that previous settlement schemes and administrative constraints have impacted recovery. The situation highlights the continuing dependence of urban local bodies on property tax compliance to sustain municipal finances.
The Ludhiana Municipal Corporation (MC) is facing a shortfall in property tax collection, with close to one lakh property owners yet to pay their dues as the current financial cycle approaches closure, affecting the civic body's revenue position and its ability to meet annual targets. Advertisement
Against a target of approximately INR 160 crore for the ongoing financial year, with an internal benchmark of INR 180 crore, the MC has collected over INR 147 crore so far. Officials indicated that a substantial portion of the remaining amount is tied to unpaid dues from a large base of defaulters, which has made last-mile recovery particularly challenging.
To accelerate collections, the civic administration has extended office hours, including operations on weekends and public holidays, while deploying field staff to follow up with defaulters. Officials overseeing the process have conveyed optimism about reaching the target, citing intensified on-ground efforts and administrative focus on closing the gap before the financial year-end.
The MC has also cautioned property owners that non-payment within the stipulated timeline will attract financial penalties. Authorities have indicated that a penalty of 20 per cent, along with an annual interest rate of 18 per cent, may be imposed on outstanding dues if liabilities for the current assessment period are not cleared within the deadline.
Officials acknowledged that earlier policy measures have had an impact on collections. A one-time settlement scheme introduced in the previous cycle, which offered relief through waivers on penalties and interest, led to reduced immediate inflows despite improving compliance among some taxpayers.
Administrative constraints have further complicated the recovery process. Civic staff have been engaged in election-related duties and preparatory work linked to enumeration and revision exercises, which has limited the manpower available for tax collection. Authorities noted that such competing responsibilities are likely to continue in the coming months, potentially affecting revenue mobilisation efforts in the next financial period as well.
Municipal leadership has emphasised the need for public participation in sustaining urban services, indicating that timely tax payments are critical for funding infrastructure, sanitation, and other civic functions. The administration has also signalled stricter enforcement measures if voluntary compliance does not improve, including notices and recovery actions against persistent defaulters.
The ongoing situation reflects a broader structural challenge faced by urban local bodies, where property tax remains a primary revenue stream but continues to be affected by compliance gaps, policy trade-offs, and operational limitations.
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