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The Lucknow Municipal Corporation (LMC) has introduced a one-time settlement (OTS) scheme to recover outstanding house, water and sewerage taxes from 2,24,749 buildings across eight zones of the city. The dues total around INR 1,500.76 crore, including INR 724.76 crore in arrears, INR 497.41 crore in pending dues and INR 278.58 crore in interest. The scheme, which began on August 15, offers a 100% waiver on accumulated interest and surcharges for eligible residential, non-residential and government properties with dues outstanding as of April 1, 2026. Applications can be filed online or offline until November 14, while the scheme will remain operational until December 15. Taxpayers with dues exceeding INR 1 lakh can pay the amount in three instalments.
The Lucknow Municipal Corporation has launched a one-time settlement (OTS) scheme to facilitate recovery of outstanding house, water and sewerage taxes from 2,24,749 buildings across eight municipal zones. The scheme began on August 15 and will remain in force until December 15, providing eligible property owners with a complete waiver of interest and surcharges on dues outstanding as of April 1, 2026.
According to the civic body, the total outstanding amount across the eight zones is around INR 1,500.76 crore. This comprises INR 724.76 crore in arrears, INR 497.41 crore in pending dues and INR 278.58 crore in accumulated interest.
The OTS scheme applies to residential, non-residential and government buildings covered by the outstanding municipal tax liabilities. Under the settlement mechanism, eligible taxpayers can receive a 100% rebate on accumulated interest and surcharges, allowing them to clear the principal tax liability without the additional financial burden arising from delayed payments.
Property owners with dues of up to INR 1 lakh can settle their liabilities within 30 days under the scheme. For taxpayers whose outstanding amount exceeds INR 1 lakh, the civic body has provided a three-instalment payment facility. The broader state-level framework permits taxpayers to deposit one-third of their dues within 30 days of approval and clear the remaining amount in two monthly instalments, with the entire payment required within three months to retain the OTS benefit.
The initiative is part of an Uttar Pradesh government scheme being implemented across all 762 urban local bodies in the state. This includes 17 municipal corporations, 200 municipal councils and 545 nagar panchayats. The state government has introduced the programme to improve recovery of long-pending municipal tax dues and strengthen the finances of urban local bodies.
Within Lucknow, Zone 3, covering Aliganj, has the highest outstanding amount, with approximately INR 301 crore due from 39,088 buildings. Zone 2, covering Aishbagh, follows with outstanding dues of INR 268.15 crore, while Zone 8, covering Aashiana, has dues of INR 134.96 crore. Zone 5, covering Alambagh, has the lowest outstanding amount among the eight zones at INR 38.02 crore.
Applications under the scheme can be submitted through both online and offline channels from August 15 to November 14. The municipal corporation has said applications will be processed within 15 days.
The OTS programme is intended to provide property owners with an opportunity to regularise long-pending municipal tax liabilities while enabling the civic body to improve revenue collection. At the state level, officials have indicated that stronger recovery of municipal taxes could support spending on services including roads, drainage, water supply, sanitation and street lighting.
The scheme therefore covers both the recovery of accumulated municipal revenue and the regularisation of property tax accounts. Property owners with eligible outstanding dues have until November 14 to submit applications, while the settlement window will continue until December 15.
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