NAGPUR: The Nagpur Municipal Corporation (NMC) has set a property tax collection target of ₹749.82 crore for 2026-27. However, a significant discrepancy in its figures has emerged — ₹1,392 crore in arrears has been excluded from the recovery plan.
Data obtained by TOI reveals that the total property tax arrears amount to ₹1,919 crore, but the NMC has only incorporated ₹526.85 crore — just 27% of the entire backlog — in this year’s recovery target. The exclusion of ₹1,392 crore greatly reduces the scope of the initiative.
Senior officials have stated that arrears from government properties, mobile towers, and ongoing court cases are not included in the annual demand. “These components are challenging to recover right away, which is why they’re absent from the yearly target,” an official noted, acknowledging that a significant amount of revenue remains unenforced.
The NMC’s demand of ₹749.82 crore encompasses ₹526.85 crore in arrears and ₹222.96 crore in current demands across over 10.5 lakh properties. This means the real liability is nearly 2.5 times what the civic body aims to recover this year, given the exclusion of ₹1,392 crore.
Among various zones, Ashi Nagar leads with ₹146.87 crore in arrears, followed by Mangalwari (₹111.53 crore) and Laxmi Nagar (₹98.44 crore). Despite these significant amounts, officials admit that major complex arrears remain largely unaddressed.
The choice to leave out a substantial portion of arrears raises concerns about selective enforcement and poor financial planning. While notices and penalties are frequently issued to residential and small commercial property owners, large-scale defaulters, such as government entities, remain largely untouched.
Civic activists argue that this approach undermines tax fairness. “Why should ordinary citizens shoulder the burden while powerful defaulters manage to evade payment?” questioned a former corporator.
The quarterly targets further highlight systemic issues. Of the ₹749.82 crore target, ₹281.18 crore (38%) is anticipated in the fourth quarter, showcasing a reliance on last-minute collection drives. This trend has historically led to hurried recoveries and inflated year-end figures, rather than consistent enforcement.
With rising infrastructure demands and departments already facing budget constraints, the omission of ₹1,392 crore from active recovery could severely impact the NMC’s finances. Essential civic services like road maintenance, drainage upgrades, and water supply hinge on property tax revenues.
This situation begs a crucial question: Is the NMC setting realistic targets, or avoiding challenging collections? If the civic body does not expand its enforcement to include the missing ₹1,392 crore, the property tax system threatens to become an ineffective exercise, meeting targets on paper while actual dues continue to mount.
