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The Lucknow Municipal Corporation is preparing to introduce a one-time settlement (OTS) scheme to help nearly 25 lakh residents clear long-pending house tax and water dues. The move is aimed at reducing the financial burden on property owners whose liabilities increased due to accumulated interest and revised property assessments over the years. Civic authorities estimate that pending house tax dues have crossed INR 700 crore, while water and sewerage dues stand at around INR 110 crore. The proposed scheme is expected to offer relief through interest waivers and help improve revenue recovery for the civic body.
The Lucknow Municipal Corporation is planning to introduce a one-time settlement scheme for residents with pending house tax and water tax dues across the city. The proposed scheme is expected to benefit nearly 25 lakh residents and provide relief to property owners struggling with rising outstanding amounts due to accumulated interest and revised assessments. Advertisement
Officials from the municipal corporation and the Jal Kal department said discussions on the framework of the scheme are currently underway. The civic body is preparing the proposal at a time when pending dues linked to property tax and water charges have increased significantly over the past few years, affecting revenue collections for urban services and infrastructure works.
According to officials, outstanding house tax dues in Lucknow are estimated at nearly INR 700 crore. Out of this, around INR 100 crore is understood to be interest accumulated on delayed payments. Separately, pending dues related to water tax and sewerage charges under the Jal Kal department are estimated at around INR 110 crore, including surcharge amounts.
Civic officials indicated that a major concern has been the continuous increase in liabilities because unpaid dues kept attracting annual interest. In many cases, revised property assessments implemented retrospectively also increased the total payable amount for property owners. Residents had reportedly raised concerns over the growing burden, especially in cases where dues had remained unresolved for several years.
The municipal corporation is likely to structure the scheme on the lines of earlier OTS programmes introduced by agencies such as the Lucknow Development Authority and Uttar Pradesh Awas Vikas Parishad. Those schemes had offered partial waivers on penal interest and provided limited-time opportunities for defaulters to clear their pending amounts.
The Lucknow Development Authority had earlier launched its OTS-2026 scheme to recover long-pending dues from allottees and leaseholders. The authority had reported recovery of several crore rupees under the initiative, with many property owners opting to settle their liabilities after receiving relief on interest components. Similar schemes introduced by urban agencies in Uttar Pradesh have generally focused on improving recovery without resorting to lengthy legal action.
Officials believe the proposed municipal OTS scheme could help improve compliance among taxpayers while also strengthening the civic body’s finances. Property tax remains one of the key revenue sources for municipal corporations and is used for maintaining roads, sanitation systems, drainage networks, street lighting and other civic infrastructure projects.
Urban development experts have also pointed out that unresolved tax arrears reduce the ability of local bodies to fund infrastructure upgrades and public services efficiently. In several cities, civic authorities have increasingly relied on settlement schemes to clear old dues and improve financial stability without imposing additional penalties on residents.
The final structure of the scheme, including eligibility conditions, waiver limits and payment timelines, is expected to be announced shortly after internal approvals are completed. Officials are also likely to decide whether residents will be allowed to clear dues in instalments under certain categories.
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