MCD invites bids from private surveyors to increase property tax collection in Delhi

According to the bids invited by the MCD, a one-year period will be provided to the agency for completing the survey

New Delhi

Covering an area of 1,366 square kilometres, the MCD is the largest urban local body in the country. (HT Archive)

The Municipal Corporation of Delhi (MCD) has invited bids from private property surveyors to increase its property tax collections, senior civic officials said, as the cash-strapped civic agency looks to increase its tax collection. The plan involves bidders undertaking physical surveys, geotagging properties and serving tax notices with computerised self-assessment data for a share in the recoveries as its incentive, officials said.

According to the bids invited by the MCD, a one-year period will be provided to the agency for completing the survey. A pre-bid meeting with agencies will be held next Wednesday and the hiring process is likely to be completed by August-end.

“A system will be developed using this database of these properties—houses, offices as well as vacant land—to improve the revenue collection. Currently, only 13 lakh properties are paying taxes while the actual number of properties is multiple times higher,” an MCD official said, requesting anonymity.

Property tax collection is one of the key revenue streams for the municipal corporation, but the low level of tax compliance remains a significant hurdle in maximising its revenue. Covering an area of 1,366 square kilometres, the MCD is the largest urban local body in the country. According to the 2011 Census, the city had 3.436 million households. In 2024, the tax department collected ₹2,163 crore against a target of ₹4,000 crore.

“We currently only have the property database of these 13 lakh properties based on self assessment. Through this survey, fresh database of all vacant lands and buildings will be created,” the official cited above said.

How the agency will operate

According to the project report, the agency will have to train agents to operate technology to geotag and record property details. It will be mandatory for them to carry ID cards and behavioural training will be provided. During field visits, agents will carry out door-to-door surveys and record property parameters through applications, based on which the MCD circle in-charge will generate a tax demand notice.

“The private agency will serve the tax demand notice and MCD will initiate the tax recovery proceedings in case of non-payment,” the report reads.

In cases where property owners refuse to cooperate, the survey teams will flag them to the circle in-charge for “non cooperation by occupier” with a time and location tag. “The circle in-charge will advise further course of action. They can plan visits on holidays or weekends for locked properties,” the report reads.

The payment to the agency will be made as per the percentage of the recoveries made, as finalised after the tender process. “The payment will be made through an escrow mechanism for which a dedicated escrow account will be set up. Full payment on the agreed percentage of collection will be only the tax collection for this year. In case of pending arrears from previous years, 50% of agreed rate will be valid,” the official said.

On August 6, HT reported how the MCD was planning to rope in private players for property tax collection, based on similar projects carried out by local bodies in Odisha and Jodhpur.

“Large numbers of properties, especially in unauthorised areas, have never paid taxes. Even in planned areas, some units are found to have gaps in tax payment years. These operators will help fill all such gaps and identify loopholes,” the official said.

“These surveys will not be limited to only planned areas but unauthorised areas and villages as well,” the official said.