As the financial year draws to a close, the Greater Hyderabad Municipal Corporation (GHMC) is intensifying its efforts against long-term property tax defaulters. To date, more than 100 significant commercial properties have been sealed, and the GHMC aims to recover hundreds of crores in unpaid taxes.
The GHMC reports that over 30,000 commercial entities—ranging from luxury hotels and retail chains to small neighborhood shops—have neglected to pay their taxes.
The municipal authority is now concentrating on the most egregious offenders, sealing their properties to compel payment. This action follows numerous unanswered notices sent over the years. Notable cases include the Katriya Hotel in Somajiguda, which remains sealed due to outstanding tax liabilities of Rs 6.16 crore, and the Aurora College in Nampally, which owes Rs 1.28 crore. Several other properties have also been impacted. A complex in Chappal Bazar, Amberpet, was sealed for owing Rs 4 lakh since 2013, while a commercial building in Attapur was locked for a debt of Rs 11 lakh since 2021.
The enforcement initiative seems to be producing swift results, with numerous businesses settling their debts almost immediately after facing action. For example, the Belson Taj Hotel in Secunderabad recently paid its outstanding bill of Rs 35 lakh within minutes of being sealed by the GHMC.
The GHMC has broadened its tax collection efforts to encompass both vacant land and constructed properties. Sandesh Estates in Jubilee Hills, which owes Rs 4.45 crore, and Leela Ventures, which owes Rs 2.62 crore, are among the leading defaulters. Officials have cautioned that building permits for these properties will be withheld until all outstanding payments are settled.
Failure to make payments may result in actions being taken under the Revenue Recovery Act, which could include the auctioning of properties. With only a few days remaining until the conclusion of the 2025-26 financial year, we strongly encourage defaulters to utilize the current One-Time Settlement (OTS) scheme, which provides a 90% reduction on interest. After the scheme concludes on April 1, any outstanding dues are expected to increase significantly,” stated a senior official from the GHMC revenue department.
In the meantime, property tax collections in CURE – GHMC, Cyberabad Municipal Corporation, and Malkajgiri Municipal Corporation have exceeded Rs 2,300 crore. Nevertheless, all three corporations did not meet the Rs 4,000 crore target for total property tax collections, which also encompasses arrears from previous years.
