Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
The Greater Chennai Corporation (GCC) has stepped up efforts to recover pending property tax dues by targeting major defaulters and exploring measures to integrate tax arrears into the loan recovery process undertaken by banks and financial institutions. The move comes as the civic body seeks to strengthen revenue collections after falling short of its revised property tax target for FY 2025-26. Property tax remains one of GCC’s most important revenue sources, funding civic infrastructure and public services across the city. Officials are preparing lists of high-value defaulters, expanding digital collection mechanisms and pursuing institutional support to ensure that outstanding municipal dues are recovered more effectively. The initiative forms part of a broader strategy to improve tax compliance and strengthen Chennai’s municipal finances amid increasing expenditure requirements.
The Greater Chennai Corporation has intensified its drive against property tax defaulters as it seeks to improve revenue collections and strengthen municipal finances following a shortfall in property tax recovery during the previous financial year.
The civic body has approached the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), requesting guidance that would enable banks and financial institutions to factor pending property tax dues into the loan recovery process when secured properties are sold or transferred. Officials believe the measure could improve recovery from chronic defaulters and prevent municipal dues from remaining unpaid during enforcement proceedings.
According to GCC officials, property tax collection reached only around 80 per cent of the targeted level during the previous financial year, prompting the corporation to examine additional mechanisms to improve compliance and reduce arrears.
Property tax constitutes one of the largest sources of revenue for the corporation and plays a critical role in funding civic services, infrastructure maintenance and urban development projects. In recent years, the corporation has introduced a range of measures aimed at simplifying tax payments and encouraging timely compliance. These include digital payment platforms, QR code-based payment systems, online reminders and mobile-based communication campaigns.
Officials have also identified large defaulters for targeted recovery action. Revenue authorities are preparing detailed lists of property owners with significant pending dues and are expected to pursue recovery measures on a zone-wise basis. Similar exercises undertaken in previous years contributed to improved collections and helped the corporation achieve record property tax revenues.
The corporation has increasingly relied on technology to streamline tax administration. QR code-enabled payments, digital reminders and online payment facilities have been expanded across residential and commercial properties, reducing dependence on physical collection drives and enabling taxpayers to settle dues more efficiently.
Despite these efforts, GCC's revised revenue targets remained challenging. Property tax collections for FY 2025-26 reached approximately INR 2,040 crore, below the revised target of INR 2,300 crore. Officials attributed part of the shortfall to resource constraints and the diversion of personnel for election-related duties, which affected field-level collection activities.
The corporation views improved tax recovery as essential for sustaining civic investments and maintaining service delivery across Chennai. By targeting persistent defaulters and seeking institutional mechanisms to recover outstanding dues, GCC aims to strengthen revenue realisation and reduce dependence on enforcement measures at a later stage.
Municipal officials indicated that the focus on arrears recovery will continue in the coming months, with particular attention on high-value defaulters and properties carrying long-pending dues. The corporation expects that stronger compliance measures and enhanced digital collection systems will support revenue mobilisation and improve the city's fiscal position.
Advertisement
Facebook
Whatsapp
