PRAYAGRAJ: Over 90,000 property owners in Prayagraj are set to benefit from a significant relief in house tax dues as the Municipal Corporation gears up to introduce a One Time Settlement (OTS) scheme in the first week of June. This initiative will waive interest on outstanding house tax amounts for both residential and commercial properties, offering substantial aid to many defaulters throughout the city.
Officials estimate that nearly ₹90 crore in accumulated interest may be waived under this scheme, which will be available for four months until September. The city boasts more than three lakh registered properties; however, around two lakh owners pay their house tax regularly each year. Currently, about 90,000 to 100,000 property owners have outstanding dues totaling over ₹125 crore, with approximately ₹90 crore attributed to interest.
The proposal gained traction following a video conference on Monday with Urban Development Minister AK Sharma and various mayors from across Uttar Pradesh about the OTS scheme’s implementation. Prayagraj Mayor Ganesh Kesarwani indicated that the scheme has received preliminary approval, with a government order expected within a week.
The mayor stated that the demand for an OTS scheme has existed for several years and the decision to proceed was made with public interest in mind. He noted that a similar initiative was implemented seven to eight years ago but was restricted to commercial properties. This time, residential properties will also be included.
Chief Tax Assessment Officer Sanjay Mamgai remarked that the scheme would aid in enhancing revenue collection for the civic body, with the PMC targeting ₹160 crore in house tax for the current financial year. To date, over 18,000 property owners have paid more than ₹5 crore in taxes.
The corporation is also prioritizing newly incorporated urban areas, as 97 gram sabhas have been merged into the city limits. More than 1.79 lakh properties have been identified in these extended areas, and tax bills are currently being issued. Officials clarified that house tax will not be levied in areas lacking essential civic amenities such as electricity, drinking water, roads, and drainage facilities. Before imposing taxes in such localities, the corporation plans to conduct surveys to ensure the necessary infrastructure is in place.
