Flat ₹1,000 fee brings relief in property registration, mutation cases in Prayagraj

The move is expected to benefit nearly 20,000 property owners, though the Municipal Corporation has not yet released official figures on the exact number of beneficiaries.

Property owners in the city seeking registration and mutation of buildings have received significant relief after the Prayagraj Municipal Corporation (PMC) House approved a flat late fee of ₹1,000 for mutation cases. This decision reverses the previous policy, under which residents of new multi-storey buildings were charged a late fee of ₹500 per month for delays in mutation.

House meeting underway at PMC on Thursday. (Anil Kumar Maurya/HT)

The move is expected to benefit nearly 20,000 property owners, though the Municipal Corporation has not yet released official figures on the exact number of beneficiaries.

The earlier policy had drawn widespread criticism from both residents and corporators. Property owners approaching the Municipal Corporation for mutation after several years often faced hefty penalties, with some reportedly being asked to pay as much as ₹2 lakh in late fees.

To address these concerns, the Municipal Corporation drafted a proposal to replace the monthly penalty with an annual fee of ₹1,000. However, when the proposal reached the House, corporators Shivsevak Singh, Kamlesh Tiwari, Bhola Tiwari, Vinay Mishra and Anupama Pandey raised objections.

During the debate, corporator Kamlesh Tiwari pointed out that, barring Ghaziabad, no other municipal corporation in Uttar Pradesh imposes a late fee for mutation. Following discussions and suggestions from members, the Chairperson directed that mutation cases be processed with a flat, one-time late fee of ₹1,000. The House subsequently approved the proposal.

Fresh relief for house tax defaulters

In a separate development, the government has introduced a one-time settlement (OTS) scheme for house tax defaulters under the Prayagraj Municipal Corporation. Under this scheme, 100 percent of the interest on pending house tax, water tax, and sewer charges has been waived.

The Municipal Corporation is also exploring further relief regarding the calculation of interest on outstanding house tax dues. A proposal to levy a flat 12 percent interest on arrears is expected to be placed before the municipal council.

According to chief tax assessment officer Sanjay Mamgai, the current system imposes 12 percent annual interest on house tax arrears, plus an additional one percent per month, effectively resulting in compound interest. He noted that this system is not standard practice in other municipal corporations.

If approved, the revised arrangement would abolish the provision for compound interest. Property owners with one year of outstanding house tax would pay only 12 percent interest, and even in cases where dues remain unpaid for two years, the interest rate on the outstanding amount would remain capped at 12 percent.