Nagpur Govt Tops NMC Tax Defaulters, Rs.850 Cr Dues

21 Jan 2025 CW Team

Major contributors to the arrears include the Regional Transport Office (RTO) with Rs 253.9 million, the Police Commissionerate owing Rs 402 million for residential quarters and police stations, and the Deputy Director of the Sports Complex with outstanding dues of Rs 128.7 million.

The NMC's property tax department data reveals a total liability of Rs 83.74 crore from government bodies for previous arrears, with an additional Rs 10.06 crore pending for the current fiscal year. Prominent educational institutions, hostels, and healthcare centres also contribute to the mounting backlog. For instance, Government Polytechnic at Sadar owes Rs 46 million, while the Public Health Laboratory has Rs 3.12 million in unpaid dues.

NMC's Response and Amnesty Scheme To recover dues, the NMC introduced an amnesty scheme waiving 80% of interest and penalties on arrears. The scheme, valid from January 1 to March 31, 2025, aims to incentivize tax compliance. Despite this, recovery actions such as property attachment and auction have been avoided for government departments, raising questions about equitable enforcement of civic obligations.

An NMC official commented, “While repeated notices are sent to defaulting departments, bureaucratic delays hamper timely payments. This sets a poor precedent for businesses and citizens, undermining tax compliance.”

Implications for Civic Services Property tax is a critical revenue stream for urban development. Non-payment hampers the NMC's ability to provide essential services such as water supply, waste management, and road maintenance.

Major Defaulters (Outstanding Amounts in Rs) Police Commissionerate: 345.8 million RTO (Rural): 253.9 million Sports Complex: 128.7 million Police Training School: 42.5 million Police Hostel: 41.3 million Government Polytechnic: 8.68 million The situation highlights the need for financial discipline among government entities to ensure the NMC can meet its commitments to citizens.

Nagpur's civic body is grappling with massive property tax arrears, with government departments among the biggest defaulters. The Nagpur Municipal Corporation (NMC) faces dues from property owners, including Rs 938.1 million owed by government institutions as of December 31, 2024. Major contributors to the arrears include the Regional Transport Office (RTO) with Rs 253.9 million, the Police Commissionerate owing Rs 402 million for residential quarters and police stations, and the Deputy Director of the Sports Complex with outstanding dues of Rs 128.7 million. The NMC's property tax department data reveals a total liability of Rs 83.74 crore from government bodies for previous arrears, with an additional Rs 10.06 crore pending for the current fiscal year. Prominent educational institutions, hostels, and healthcare centres also contribute to the mounting backlog. For instance, Government Polytechnic at Sadar owes Rs 46 million, while the Public Health Laboratory has Rs 3.12 million in unpaid dues. NMC's Response and Amnesty Scheme To recover dues, the NMC introduced an amnesty scheme waiving 80% of interest and penalties on arrears. The scheme, valid from January 1 to March 31, 2025, aims to incentivize tax compliance. Despite this, recovery actions such as property attachment and auction have been avoided for government departments, raising questions about equitable enforcement of civic obligations. An NMC official commented, “While repeated notices are sent to defaulting departments, bureaucratic delays hamper timely payments. This sets a poor precedent for businesses and citizens, undermining tax compliance.” Implications for Civic Services Property tax is a critical revenue stream for urban development. Non-payment hampers the NMC's ability to provide essential services such as water supply, waste management, and road maintenance. Major Defaulters (Outstanding Amounts in Rs) Police Commissionerate: 345.8 million RTO (Rural): 253.9 million Sports Complex: 128.7 million Police Training School: 42.5 million Police Hostel: 41.3 million Government Polytechnic: 8.68 million The situation highlights the need for financial discipline among government entities to ensure the NMC can meet its commitments to citizens.

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