LUCKNOW: Approximately 250,000 homeowners in the city will soon experience relief from long-standing house tax and water tax obligations. The Lucknow Municipal Corporation (LMC) is set to launch a one-time settlement (OTS) scheme addressing overdue payments owed to the civic body and its Jalkal department.
The upcoming OTS initiative is modeled after previous successful programs by the Lucknow Development Authority and UP Awas Vikas Parishad.
According to official records, the accumulated house tax debts owed to the LMC have reached around ₹700 crore, which includes nearly ₹100 crore in interest. The Jalkal department also reports approximately ₹110 crore in overdue water and sewerage fees, along with surcharges.
Officials indicated that this scheme is expected to benefit property owners whose debts have increased significantly over the years due to a 15% annual interest rate on unpaid house taxes. The accrued interest is added to the principal, causing the total liabilities to rise. In many cases, retroactive adjustments in property assessments have further escalated these amounts.
The last similar OTS scheme was introduced in 2019, which completely waived interest charges and offered rebates for prompt payments. If approved, the new plan could provide full interest forgiveness once again, enabling thousands of defaulters to settle their debts by paying just the principal and simultaneously improving revenue collection for the corporation.
