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Legal hurdles stall property tax hike in Pimpri-Chinchwad
Senior officials said that the ruling Bharatiya Janata Party (BJP) had initiated discussions on raising property tax as the financial condition of the civic body had weakened in recent years
The expected property tax hike in Pimpri-Chinchwad has been stalled due to legal and procedural hurdles, with the civic administration making it clear that there will be no increase in property tax or water charges this year, said officials.
Senior officials said that the ruling Bharatiya Janata Party (BJP) had initiated discussions on raising property tax as the financial condition of the civic body had weakened in recent years. However, as per the rules, any proposal to revise property tax must be approved by the standing committee before February 20 of the ongoing financial year. As the standing committee has not yet been constituted, the mandatory approval could not be obtained, effectively ruling out any tax hike this year.
Confirming the decision, Pimpri-Chinchwad municipal commissioner Shravan Hardikar said, “Approval of the standing committee before February 20 is compulsory for any property tax revision. Since the committee is not in existence, a decision could not be taken. There will be no increase in property tax or water charges this year.”
According to civic records, the Pimpri-Chinchwad Municipal Corporation (PCMC) currently has 7.32 lakh registered properties, including residential, commercial, non-residential units and open plots. Property tax rates were last revised in 2013–14.
As per officials, the civic body’s finances have come under strain due to high expenditure during administrative rule and ongoing development works. With the BJP returning to power for a second consecutive term, leaders are now focusing on monitoring existing projects rather than launching new ones.
According to sources, during a recent meeting with officials, a BJP leader suggested preparing a proposal to marginally increase property tax, licence fees and other charges in the FY2026–27 to improve revenue. Preparations for such a proposal had begun, but the absence of the standing committee has derailed the plan for the current year.
The general body is scheduled to elect standing committee members on Friday, but the delay has already crossed the statutory deadline for approving a tax hike.
Meanwhile, internal differences within the ruling party have also surfaced. While one BJP legislator was reportedly in favour of increasing property tax in view of the poor financial health of the corporation, another senior party office-bearer has opposed any hike in the coming year. This has triggered talk of a tussle between the two leaders.
A recent survey conducted through a private agency has identified over three lakh additional properties that were previously not registered. The process of assessing these properties has begun, and once completed, the total number of taxable properties in the city is expected to cross 10 lakhs, said officials.
