MCG to speed up revenue collection to stave off funds crunch

Facing a severe funds crunch, the Municipal Corporation of Gurugram (MCG) commissioner Mukesh Kumar Ahuja on Thursday directed officials to expedite revenue collection, during a review meeting at the MCG’s Sector 34 office. According to MCG officials privy to the matter, the civic body is yet to recover around ₹930 crore from property tax dues

Facing a severe funds crunch, the Municipal Corporation of Gurugram (MCG) commissioner Mukesh Kumar Ahuja on Thursday directed officials to expedite revenue collection, during a review meeting at the MCG’s Sector 34 office.

Property tax collection is the main source of revenue for the MCG. (HT Archive)

Ahuja called for a meeting on Wednesday night and issued an order stating that there is a “dire need to give impetus to revenue recoveries” as “revenue collections are far behind the budgetary targets.”

So far, the MCG has recovered only 7% of its projected target of ₹235 crore through property tax collections, which is the main source of revenue for the MCG and accounts for more than 85% of its income.

MCG’s cash crunch is a matter of concern, especially, given that it is the only government body in Gurugram which has a financial surplus and it regularly supports other agencies, such as the Gurugram Metropolitan Development Authority, Haryana Shahari Vikas Pradhikaran and even the National Highways Authority of India locally for developmental projects, both financially and with machinery.

According to MCG officials privy to the matter, the civic body is yet to recover around ₹930 crore from property tax dues.

While reviewing the property tax collections in the meeting, the commissioner said that dues from property tax defaulters, who have been given notices, should be recovered before the next meeting, scheduled for every second Tuesday of a month, as per the order issued on Wednesday.

The MCG has compiled a list of more than 3,600 property tax defaulters, each of who owe the civic body more than ₹5 lakh in dues. Officials said that nearly half of the defaulters in this list have been issued notices warning of action unless they cleared their dues.

“The commissioner has directed zonal taxation officer (ZTO) for taking whatever action is needed according to the rules for achieving full recovery and to complete the same prior to next review meeting. He further said that by imposing the duty of zone-wise employees, the property tax defaulters should be asked to deposit the property tax by giving information through the phone also,” said SS Rohilla, public relations officer (PRO), MCG.

As per the Haryana Municipal Corporation Act, 1994, property owners are initially given 15 days to pay property tax dues after a notice is served, following which their sewerage and water connections may be cut if dues are still unpaid. If the property owner continues to default on the payment of property tax repeatedly, his or her property can be sealed and subsequently, auctioned off by the MCG to recover the tax dues.

Ahuja also directed officials to make people aware of a 10% rebate on property tax payment currently on offer for the 2021-22 financial year, announced by the Haryana government, on pay property tax payments till July 31.

He also directed officials that property tax bills for the financial year 2021-22 should be sent through registered posts immediately.

Other decisions for increasing revenue

Ahuja directed all concerned zonal taxation officers to survey commercial institutions in their respective zones and send notices to the institutions located in the designated areas for procuring trade licences. He directed the MCG joint commissioners to supervise this work.

Ahuja also directed officers concerned to collate data on all the mobile towers located within the MCG limits, to check how many are authorised, and to calculate the pending fees for the ones that are unauthorised.