Over 90,000 property owners in Prayagraj are poised to receive significant relief from house tax liabilities as the Municipal Corporation is set to introduce a One Time Settlement (OTS) scheme starting in the first week of June. This proposed initiative will waive interest on outstanding house tax dues for both residential and commercial properties, providing assistance to thousands of defaulters throughout the city.
Officials indicated that approximately Rs 90 crore in accumulated interest is expected to be waived under this scheme, which will be in effect for four months until September. The city boasts over three lakh registered properties, with nearly two lakh owners consistently paying house tax each year. However, around 90,000 to one lakh property owners currently face outstanding dues that exceed Rs 125 crore, which includes nearly Rs 90 crore in interest.
The proposal gained traction following a video conference on Monday between Urban Development Minister AK Sharma and mayors from across Uttar Pradesh concerning the implementation of the OTS scheme. Prayagraj Mayor Ganesh Kesarwani announced that in-principle approval for the scheme has been granted, and a government order is anticipated within a week.
The mayor remarked that the demand for an OTS scheme has been pending for several years, and the decision was made with public interest as a priority. He noted that a similar scheme was launched seven to eight years ago, but it was restricted to commercial properties.
This time, residential properties have also been included. Chief Tax Assessment Officer Sanjay Mamgai stated that the scheme would aid in enhancing revenue collection for the civic body. The Prayagraj Municipal Corporation has set a target of collecting Rs 160 crore in house tax for the current financial year. To date, over 18,000 property owners have paid more than Rs 5 crore in taxes.
The corporation is placing emphasis on newly expanded urban regions following the merger of 97 gram sabhas into the city boundaries. Over 1.79 lakh properties have been recognized in these newly incorporated areas, and tax bills are currently being distributed.
Nevertheless, officials have made it clear that house tax will not be levied on areas that do not possess fundamental civic amenities, including electricity, potable water, roads, and drainage systems. The corporation intends to carry out surveys and guarantee the provision of essential infrastructure prior to enforcing taxes in these regions.
