HYDERABAD: Property tax arrears in the three municipal corporations of Greater Hyderabad have surpassed an alarming ₹3,000 crore, exceeding both the current fiscal’s collections and its target.
By the time the ongoing one-time settlement (OTS) scheme—offering a 90% waiver on accumulated interest on arrears—expires on March 31, the total arrears may likely escalate to over ₹5,000 crore.
Before the trifurcation of the Greater Hyderabad Municipal Corporation (GHMC), the property tax collection target for this financial year was set at ₹3,000 crore.
Thus far, the GHMC, Cyberabad Municipal Corporation (CMC), and Malkajgiri Municipal Corporation (MMC) have collectively managed to gather only about ₹2,000 crore in property tax, significantly hindering development projects.
In the GHMC alone, property tax arrears are estimated at around ₹1,400 crore, concerning approximately 3.5 lakh assessments. Across the three corporations, officials estimate that 6-7 lakh property owners are currently in default.
Particularly concerning is the fact that nearly 30% of total arrears, totaling ₹900 to ₹1,000 crore, stem from commercial establishments. Many high-value properties and prominent developers have yet to settle their payments despite repeated notifications. Several renowned commercial entities are noted among the defaulters.
Officials emphasize that property tax is the principal revenue source for the three municipal corporations. With Hyderabad’s rapid urban development, increasing infrastructure needs, and ongoing flood mitigation efforts, the delay in tax payments is directly impacting the city’s growth capacity.
“We have begun issuing notices to defaulters. If they continue to ignore their dues despite the OTS interest waiver, we will issue distress warrants under Section 269 of the GHMC Act. Once a distress warrant is issued, the corporation can attach and auction properties to recover the dues,” stated a senior official from the GHMC revenue division.
Compounding the issue is the significant category of government buildings. There are roughly 290 state and central government buildings within GHMC limits, many of which have incurred substantial unpaid tax dues. Officials estimate that government institutions collectively owe nearly ₹1,000 crore in property tax arrears.
Major defaulters reportedly include the Telangana secretariat, various revenue department offices, Osmania Medical College, Gandhi Hospital, and buildings belonging to the prohibition and excise department. Although the GHMC has repeatedly corresponded with different departments and secured partial payments, a considerable amount remains outstanding.
