HYDERABAD: Property tax arrears in the three municipal corporations of Greater Hyderabad have crossed a staggering 3,000 crore, overtaking the current fiscal’s collections and the target.
By the time the current one time settlement (OTS) scheme, which offers a waiver of 90% accumulated interests on arrears, expires on Mar 31, the arrears may likely cross 5,000 crore.
Before the trifurcation of the Greater Hyderabad Municipal Corporation (GHMC), the property tax collection target for this financial year was 3,000cr.
So far this fiscal, the GHMC, Cyberabad Municipal Corporation (CMC) and Malkajgiri Municipal Corporation (MMC) have together collected only about 2,000 crore in property tax, thereby severely affecting development projects.
In GHMC limits alone, property tax arrears stand at around 1,400 crore, spread across nearly 3.5 lakh assessments. Across the three corporations, officials estimate that 6-7 lakh property owners are in default.
What is particularly worrying for civic authorities is that nearly 30% of total arrears, amounting to 900 to 1,000 crore, are from commercial establishments. Many high-value properties and prominent developers continue to delay payments despite repeated notices. Several well-known commercial entities feature prominently on the arrears list.
Officials say that property tax is the primary revenue source for the three municipal corporations. With Hyderabad’s rapid urban expansion, rising infrastructure demands and recurring flood mitigation works, delayed tax payments are directly impacting the city’s development capacity.
“We have started issuing notices to defaulters. If they fail to clear dues despite the waiver on interest under OTS, we will issue distress warrants under Section 269 of the GHMC Act. Once a distress warrant is issued, the corporation has the power to attach and auction properties to recover dues,” said a senior official in the GHMC revenue wing.
Adding to the burden is another significant category — govt buildings. There are around 290 state and central govt buildings within GHMC limits, many of which accumulated large unpaid tax dues. Officials estimate that govt institutions together owe nearly 1,000 crore in property tax arrears.
Major defaulters reportedly include the Telangana secretariat, revenue department offices, Osmania Medical College, Gandhi Hospital, and prohibition and excise department buildings. Although GHMC repeatedly wrote to various departments and managed to recover partial payments, a substantial portion remains unpaid.
