GURUGRAM: On Thursday, the Municipal Corporation of Manesar (MCM) initiated a major crackdown on residential properties unlawfully operating as paying guest (PG) accommodations and other commercial entities while avoiding higher property taxes.
They have issued a warning stating that failure to register property IDs may lead to disruptions in essential services such as waste collection and water supply.
In a firm notice to property owners, the civic body acknowledged that a significant number of properties recorded as residential are actually being utilized fully or partially for PGs, hostels, and various commercial uses.
Joint Commissioner Lokesh Yadav stated, “Property owners have transformed their residential properties into PGs, hostels, coaching centers, or small commercial establishments without amending their property use in the corporation’s records. Residential properties incur lower taxes compared to commercial ones, allowing owners to exploit this discrepancy, resulting in revenue loss for the corporation.”
MCM now mandates that all property owners and occupants self-declare the actual usage of their properties, warning that “misdeclaration or concealment will be viewed as tax evasion” and will lead to penalties under the Haryana Municipal Corporation Act, 1994, and related regulations.
The civic body has formed inspection and verification teams to conduct physical assessments and usage evaluations, marking the end of the predominantly paper-based oversight that permitted commercial activities to proliferate in residential zones.
Officials indicated that inconsistencies between municipal records and actual usage will result in “severe consequences,” including retrospective property tax reassessments, penalties up to 100% of the differential tax amount with interest, recovery actions, disconnection of water and sewer services, and possibly prosecution.
The Joint Commissioner emphasized, “The commercial use of residential properties results in significant revenue losses for the corporation. As a result of IMT Manesar being within the corporation’s jurisdiction, numerous workers, students, and young professionals are residing here. There are several properties recorded as residential while they are actually utilized commercially.”
The civic body encourages voluntary self-declarations ahead of MCM inspections, assuring that such disclosures will be acknowledged under the law.
However, it firmly stated that no leniency will be extended for violations uncovered during inspections, asserting that disclosures made post-inspection will not protect offenders from penalties.
