NAGPUR: The Nagpur Municipal Corporation (NMC) has commenced property auction proceedings against only 106 defaulters, which represents a negligible 0.002% of the 460,000 property owners who failed to pay their taxes during the 2024-25 fiscal year.
Despite property tax arrears amounting to an alarming ₹938.7 crore, excluding penal interest, the NMC’s enforcement actions appear insufficient. Although the civic body has begun auctioning properties to recoup long-overdue payments, the scale of these actions is too minimal to significantly reduce the arrears or deter further tax non-compliance.
According to data, the NMC issued 13,224 recovery warrants aimed at collecting ₹126.35 crore. Of these, 11,613 were delivered, covering ⸻₹106.95 crore in total dues. Consequently, 5,143 property owners settled a total of ₹34.86 crore, while 3,519 properties were attached to recover ₹30.60 crore. In addition, notices were published for 736 properties, targeting ₹16.08 crore in outstanding dues.
The current auction has been initiated against 106 properties to recover over ₹2 crore. The majority of these, 67 properties, are located in the Mangalwari zone, which has tax dues of ₹1.39 crore. The Satranjipura zone is next, with 27 properties (₹16.13 lakh), followed by Lakadganj with 13 properties (₹55.55 lakh).
However, these figures fail to capture the severity of the situation. Out of the total 687,000 registered properties within NMC limits, 460,000 owners defaulted on their tax payments in 2024-25. Although NMC aimed to recover ₹325 crore, only ₹300 crore was collected, falling short of both its target and the growing financial demands of the city. The NMC managed to recover ₹318 crore in total property tax during 2023-24, yet the arrears nearly triple that amount, highlighting a significant gap in enforcement and compliance.
Senior officials recognize that unless the NMC enhances its tax administration strategies—including improved tracking, stricter penalties, and prompt communication with property owners—the disparity between demand and recovery will only continue to grow. “We need to adopt a data-driven, technology-supported approach to collections. Isolated auction efforts will not remedy a ₹938 crore issue,” stated an official from the tax department.
While the property auction initiative is a step forward, experts assert that it must be complemented by systemic changes, such as enhanced taxpayer databases, better inter-department coordination, and rigorous follow-ups on non-payments. Raising public awareness and offering incentives for timely payments could also help address the deficit.
With civic finances under pressure and critical infrastructure projects delayed due to inadequate funding, the NMC cannot afford to maintain the status quo. The success of this auction initiative may set a significant precedent, but unless the corporation enhances its enforcement and modernizes tax recovery systems, its financial stability will remain in jeopardy.
