The Uttar Pradesh government has launched a One-Time Settlement (OTS) scheme to facilitate the recovery of pending property-related taxes across urban local bodies in the state. The scheme covers outstanding house tax, water tax and sewerage tax and provides property owners with an opportunity to clear their dues through a simplified settlement process.
The scheme will be implemented across all 762 urban local bodies (ULBs) in Uttar Pradesh, including 17 municipal corporations, 200 municipal councils and 545 nagar panchayats. It is intended to provide relief to property owners with long-pending tax arrears while improving revenue collection by local civic authorities.
The OTS scheme will become effective from August 15, 2026, and will remain in operation for four months. During this period, eligible taxpayers can apply to settle their outstanding dues and avoid being classified as defaulters.
Under the settlement arrangement, taxpayers will be permitted to pay their pending dues in a maximum of three instalments. Applicants will have to deposit one-third of the total outstanding amount within the first 30 days. The remaining two-thirds can be paid during the subsequent period, with the entire outstanding amount required to be cleared within three months of applying under the scheme.
The Urban Development Department has directed officials heading the urban local bodies to conduct awareness campaigns to inform residents about the scheme. Public outreach activities will be undertaken to encourage property owners with pending dues to take advantage of the settlement opportunity.
Urban Development Minister Arvind Kumar Sharma said civic bodies had been instructed to establish help desks at their offices to assist applicants. The help desks will address queries submitted through the online portal as well as applications filed physically.
The government expects the scheme to improve the collection of long-pending municipal revenue while providing taxpayers with a mechanism to settle outstanding liabilities without facing the burden associated with prolonged arrears.
According to the state government, the revenue recovered through the OTS scheme will be used by urban local bodies for roads, drainage, drinking water supply, sanitation, street lighting and other public facilities. Improved recovery of pending taxes is also expected to strengthen the ability of municipal bodies to undertake development and maintenance works.
The initiative comes as urban local bodies seek to improve their revenue position and recover outstanding property-related taxes. By providing a time-bound settlement window and allowing payment in instalments, the government aims to encourage property owners to clear their dues within the prescribed period.
With the scheme covering urban areas across Uttar Pradesh, property owners with pending house, water and sewerage tax liabilities will have an opportunity to regularise their dues during the four-month implementation period.
