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The Ghaziabad Municipal Corporation (GMC) has opened a one-time settlement window for more than 60,000 property tax defaulters, allowing them to clear outstanding dues without paying the applicable 12% annual penalty. The concession covers property tax liabilities outstanding as of 1 April 2026 and is available until 15 December 2026. Eligible taxpayers must indicate their intention to participate by 14 November. GMC estimates that penalties worth around INR 120 crore could be waived through the exercise. Property tax in the municipal area includes house, water and sewer taxes, while rates differ according to property use and the width of the road on which a property is situated.
The Ghaziabad Municipal Corporation (GMC) has introduced a one-time settlement mechanism for over 60,000 property owners with outstanding tax liabilities, giving them an opportunity to settle their dues without the 12% annual penalty normally imposed on delayed payments. The scheme covers arrears pending as of 1 April 2026 and will remain operational until 15 December 2026.
Property owners seeking the benefit will have to register their intention to participate by 14 November. They must subsequently clear the eligible outstanding amount in full within the settlement period to qualify for the penalty waiver. The arrangement therefore provides relief on the additional charge accumulated because of delayed payment, while retaining the principal tax liability.
According to GMC estimates, penalties amounting to about INR 120 crore could be written off for the identified group of defaulters. The civic body's calculation is based on the number of taxpayers covered by the initiative and the penalties accumulated on their unpaid property tax accounts.
The municipal property tax covers house tax as well as water and sewer taxes for properties within the corporation's jurisdiction. Ghaziabad has roughly five lakh establishments falling within the municipal area, making property tax an important component of the civic body's revenue base.
The amount payable by an individual property owner varies according to factors including the nature of the property and the road on which it is located. Residential properties on roads measuring more than 24 metres attract a rate of INR 3.40 per sq ft, while those situated on roads between 12 and 24 metres are charged INR 2.81 per sq ft. The rate is INR 2.28 per sq ft for properties on roads narrower than 12 metres.
The settlement initiative is also part of a wider Uttar Pradesh government framework for resolving accumulated municipal tax dues. The state-level one-time settlement programme covers house, water and sewer tax arrears across urban local bodies, including municipal corporations, municipal councils and nagar panchayats. It applies to dues outstanding up to 1 April 2026.
Under the broader state framework, taxpayers can settle eligible principal dues while receiving relief from interest and surcharge. The programme is intended to bring long-pending accounts back into the regular municipal tax system and improve collection of outstanding revenue.
For GMC, the scale of the current exercise is significant in relation to its existing revenue collection. The corporation raised INR 609 crore in total revenue during 2024-25, of which property tax contributed approximately INR 340 crore. Recovery of older dues could therefore add to the corporation's property-tax collections without changing the underlying tax liability.
The civic body is also dealing with differences in taxation between residential and commercial properties. Commercial properties currently face higher rates than residential properties, while a separate proposal is being considered to reduce the burden on small and medium enterprises and bring their rates closer to residential levels.
The settlement window gives eligible defaulters a defined period to resolve their pending accounts. Those wishing to use the penalty waiver must first communicate their intention by 14 November and complete payment by 15 December.
Once the settlement period closes, taxpayers who have not complied with the conditions will not receive the benefit available under the one-time arrangement. The scheme therefore provides a time-bound route for the corporation to recover outstanding principal dues while allowing eligible property owners to avoid accumulated penalties.
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