NAGPUR: The Nagpur Municipal Corporation (NMC) is grappling with Rs1,919 crore in unpaid property taxes, highlighting significant revenue recovery issues, with 4.54 lakh properties currently defaulting on payments—some for over 25 years.
This unpaid tax represents almost one-third of NMC’s proposed budget of Rs5,857 crore for the fiscal year 2026-27.
The magnitude of this default isn’t simply a recent occurrence; it reflects a long-standing systemic issue. Data indicates that Rs1,227 crore, approximately 64% of the total arrears, comes from properties that have neglected their taxes for 11 to 25 years. An additional Rs473 crore is owed by defaulters from the 6-10 year category, while Rs169 crore remains unpaid for 2-5 years. In contrast, more recent defaulters (within the last year) only account for Rs29 crore, revealing that longstanding debts continue to escalate due to ineffective enforcement.
The statistics reveal a concerning pattern: while the municipality often targets smaller, more recent defaulters, larger and longer-standing ones often evade scrutiny, resulting in accrued dues going unchecked.
A detailed breakdown shows the main areas of concern. Open plots alone contribute Rs414 crore to the total amount owed, making them the largest single category of defaulters. This is followed by properties lacking Geographic Information System (GIS) mapping, which account for Rs352 crore, illustrating significant gaps in property data management. Residential properties are responsible for Rs341 crore, indicating widespread non-compliance among individual homeowners.
Additionally, disputed properties account for Rs313 crore of the total, mostly tied up in ongoing legal or administrative tussles. Properties owned by the state government owe Rs227 crore, raising important questions about accountability within public institutions.
Commercial and mixed-use properties also contribute to the growing burden, with non-residential properties owing Rs103 crore and mixed-use developments exceeding Rs150 crore. Though these amounts may seem minor in comparison, they signify a broader trend of deferred tax compliance across various property types.
The distribution by tax brackets emphasizes an imbalanced recovery strategy. A staggering number of over 3.21 lakh properties fall within the lowest dues bracket of below Rs25,000, constituting Rs256 crore. In stark contrast, just 1,583 properties owing more than Rs5 lakh each account for a significant Rs833 crore, making this group of high-value defaulters the largest contributor to unpaid taxes.
Furthermore, data from NMC’s property tax department reveals approximately 28,398 properties that have never fulfilled tax obligations, resulting in outstanding dues of Rs259.48 crore.
This disproportionate situation indicates that focusing enforcement efforts on a smaller group of high-value defaulters could potentially recover nearly half of the pending dues. However, current enforcement strategies seem disproportionately aimed at smaller taxpayers, raising concerns regarding priorities and political will.
Civic experts argue that this issue reflects not only administrative inefficiency but also a systemic failure to maintain financial discipline over the years. A former civic official stated, “When dues remain unpaid for decades, it indicates a breakdown in accountability. It also fosters a culture where non-payment is normalized.”
With infrastructure needs growing and finances tightening, the inability to recover nearly Rs2,000 crore could seriously jeopardize services such as road maintenance and water supply projects. The contrast between this sum and the annual budget highlights the seriousness of the crisis, as these funds could finance significant civic developments.
