MCG cracks down on unpaid property tax; 100s of high-value cases identified

To be sure, under the Haryana Municipal Corporation Act, all owners of buildings and vacant plots within municipal limits are required to pay annual property tax

The Municipal Corporation of Gurugram (MCG) has intensified its crackdown on chronic property tax defaulters, issuing recovery notices to multiple owners with long-standing dues, officials said on Tuesday.

Reinforcing accountability, the corporation urged residents not to involve intermediaries or brokers in property tax matters, stressing transparency and direct engagement through official channels. (Parveen Kumar/HT Photo)

The drive comes amid rising defaults and growing arrears. Officials have compiled lists of the top 100 defaulters in each zone, with a priority focus on properties where outstanding taxes exceed ₹50 lakh.

Despite lowering its FY-25 property tax target to ₹300 crore—down from ₹500 crore the previous year—the civic body managed to collect only ₹240 crore, marking a 5% decline from the ₹254 crore collected in FY-24. According to officials, the shortfall is attributed to incorrect property records, unresolved disputes, and property owners delaying payments in anticipation of rebates.

On Tuesday, Pankaj Kumar, zonal taxation officer of Zone-2, issued recovery notices to 22 such high-value defaulters. MCG confirmed that similar notices are being served across other zones as well, warning of strict action, including sealing and auctioning of properties in case of continued non-compliance.

To be sure, under the Haryana Municipal Corporation Act, all owners of buildings and vacant plots within municipal limits are required to pay annual property tax. The law stipulates an annual interest of 18% on unpaid dues. Persistent defaulters risk property sealing and auction as per statutory provisions, which will begin from the first week of June.

“City development schemes and basic municipal services heavily depend on this revenue source. Stringent measures against chronic defaulters are necessary to ensure the city’s planned growth,” said MCG Commissioner Pradeep Dahiya.

Reinforcing accountability, the corporation urged residents not to involve intermediaries or brokers in property tax matters, stressing transparency and direct engagement through official channels. To assist those unfamiliar with digital processes, help desks have been established at municipal offices. Staff at these desks are required to resolve citizen grievances promptly.

Officials said that zonal taxation officers have been instructed to act immediately on complaints. Employees in the tax department have been explicitly directed not to delay, reject, or revert applications without valid cause. Any such misconduct will lead to departmental proceedings, they added.

According to officials, since April 1, 2015, the MCG has received 11,159 objections related to property tax assessments. Of these, 7,622 were resolved within the designated timeframe, 554 were rejected due to incomplete documentation, and 1,700 were reverted to applicants for corrections. Only 1,283 cases remain pending as of now, they added.

The MCG has also called on citizens to report any illegal payment demands to the commissioner or additional commissioner, assuring immediate legal action against offenders. Officials said that citizens are advised to handle tax-related matters personally or through authorised MCG portals to avoid fraud.