An examination of the MCG joint commissioner’s office revealed that the corporation lacks records for 34 property owners who have failed to pay taxes totaling nearly Rs 97.2 crore. Without the identification of these owners, the corporation has limited options for collecting the owed property tax, as highlighted by the principal accountant general in the audit report conducted this February.
In the absence of the property owners’ names, the likelihood of serving notices and commencing legal proceedings against these owners is minimal.
The chances of recovering the outstanding property tax from these properties appear very slim, the report stated. It further noted that in light of MCG’s financial interests, authorities should engage with revenue officials to identify the property owners.
The report indicated that MCG had “failed to take action” to recover taxes from defaulters, resulting in the accumulation of dues. The auditor also requested clarification from MCG regarding its inability to recover taxes and the absence of enforcement actions against the defaulting owners.
In response to the report, an MCG official informed on Wednesday that the corporation is working to “retrieve” the records of the defaulters. Aside from stamp duty and advertisement fees, property tax serves as a significant revenue source for the corporation. In the fiscal year 2024-25, MCG collected Rs 232.9 crore in property taxes and has projected property tax income of Rs 275 crore for the current fiscal year. The audit indicated that there are 120 property tax defaulters, each owing the corporation more than Rs 1 crore.
Overall, the dues from unpaid property tax amount to Rs 280.6 crore, in addition to Rs 18.4 crore in fire tax and Rs 35.6 crore in development charges. Kuldeep Yadav, a city councillor, remarked that it is “unacceptable” that such a substantial amount of taxes remains uncollected. “The findings of the audit report serve as a harsh criticism of MCG’s failure to meet its fundamental responsibilities.
It is clear that MCG has been asleep at the wheel, allowing tax evaders to go unpunished while the public suffers. Heads should roll over this scandalous dereliction of duty,” he said.
