Chawri Bazar collapse: Owner paid property tax for non-existent floors to manipulate protection for older structure, says MCD

An inquiry by the Municipal Corporation of Delhi (MCD) found that the owner of the under-construction three-storey building that collapsed on Thursday, killing two, had paid property tax for a five-floor structure in April under a property tax amnesty scheme in a bid to manipulate the system and claim protection for the building under Delhi Special Laws, officials said

An inquiry by the Municipal Corporation of Delhi (MCD) found that the owner of the under-construction three-storey building that collapsed on Thursday, killing two, had paid property tax for a five-floor structure in April under a property tax amnesty scheme in a bid to manipulate the system and claim protection for the building under Delhi Special Laws, officials said.

The site of the collapse. (Sonu Mehta/HT Photo)

“As per the records received from the Property Tax Department, the owner deposited property tax amounting to ₹75,114 on 22.04.2026 under the self-assessment (SUNIYO) Scheme, covering six financial years. In the self-assessment returns, the property was declared as a Ground plus Four Floors (G+4) building, having a covered area of approximately 80 square metres (approx 96 sq yards),” an MCD report, accessed by HT, read.

Under the SUNIYO scheme, those who paid taxes for the past six years get a waiver for all pending tax returns from 2004 onwards – which would effectively cloud the date of construction in municipal records.

It added that while portions of the previous structure existed on the premises, the owner appeared to have undertaken fresh construction on the second and third floors under the garb of repairs. “The declaration of excess floor while self-assessment of property during filing of property tax shows the mala fide intention to misguide the authority to take advantage of protection under special laws,” the inquiry report states.

However, the provision, initially meant to remain in force for just one year, has become a loophole.

Under Sumpattikar Niptaan Yojana (SUNIYO), property owners received a waiver of pending property tax dues and penalties from 2004 upon paying taxes for six financial years. To avail of this waiver, the owner had to pay the principal amount of property tax without any interest and penalty for the current year and the previous five financial years.

“Essentially, the owner was trying to indicate that the building was old and protected by creating tax records while the structure did not exist. A police complaint will be filed for this manipulation as well,” the official said.

The genesis of the regulatory protection dates to February 2006, when the MCD launched a city-wide sealing drive following court orders. The scale of unauthorised construction and other violations was so large that Parliament intervened, with the then UPA government passing the Delhi Laws (Special Provisions) Act, 2006. The law initially provided protection against sealing for just one year, but has been subsequently extended multiple times.