PUNE: In response to recent protests from some residents, the Pune Municipal Corporation (PMC) has announced a new amnesty scheme for property tax defaulters, set to launch from November 15, 2025, until January 15, 2026. “The monthly penalty of 2% has now surpassed the original tax amount, prompting this initiative, which will provide a 75% waiver on penalties,” explained PMC’s additional commissioner, Prithviraj BP.
Recently, the citizens’ group Sajag Nagrik Manch criticized the effectiveness of such schemes, stating that previous efforts have failed to encourage defaulters to pay their dues.
According to the Maharashtra Municipal Corporations Act, a 2% monthly penalty is imposed on overdue property tax payments. The new scheme will address the significant arrears, which include both the original tax and penalties.
Data from PMC indicates that Rs13,097.11 crore remains uncollected from defaulters, comprising Rs3,635.62 crore in original taxes and Rs9,461.49 crore in penalties. A total of 637,609 properties are reported to have outstanding dues, including 532,388 residential properties, 65,467 non-residential, 21,573 open plots, and 13,181 mixed-use properties. Notably, 284,346 properties in newly merged areas still have unpaid dues, while 353,263 have defaulted on tax payments.
This week, the Manch addressed a letter to PMC, voicing concerns that repeated amnesty schemes send the wrong message to responsible taxpayers. “Many beneficiaries of previous amnesty schemes have reverted to defaulting, resulting in decreased revenue for the civic body,” remarked group member Vivek Velankar.
According to data obtained via the Right to Information Act (RTI), PMC lost Rs129 crore and Rs64 crore in revenue during the financial years 2020-2021 and 2021-2022, respectively, after similar schemes were implemented that included waiving interest on penalties. In 2020-2021, 149,683 property owners received tax rebates, totaling around Rs210 crore. However, about 42% of these beneficiaries, or 63,518 owners, subsequently defaulted again. A similar trend was observed in 2021-2022, with 66,464 property owners benefiting, yet nearly 67% (44,685 owners) failed to comply with tax payments once more.
The civic body is offering a 75% penalty discount through this upcoming program.
