Nagpur Civic Body Eyes Only 749 Crore Property Tax for FY27

Nagpur, May 18: NMC set a 749.82 crore property tax collection target for 2026-27, but excluded a staggering 1,392 crore in arrears from its recovery plan, leaving nearly 2.5 times the target amount unaddressed.

Arrears Breakdown

Official data shows that total pending property tax arrears stand at 1,919 crore. However, the civic body has chosen to include only 526.85 crore — barely 27 per cent of total arrears — in this year's recovery target. The remaining 1,392 crore has effectively been left out. Senior officials confirmed that dues from government properties, mobile towers and cases pending in courts have not been factored into the annual demand.

Selective Enforcement Concerns

The decision to leave such a massive portion of arrears has triggered concerns over selective enforcement and weak financial planning. While residential and small commercial property owners are routinely issued notices and penalties, bulk defaulters — including institutional and government entities — continue to remain outside the immediate recovery net. Civic activists argue that this approach undermines tax equity.

Zone-Wise Demand

NMC's total demand of 749.82 crore includes 526.85 crore arrears and 222.96 crore current demand spread across over 10.5 lakh properties. Among zones, Ashi Nagar tops the list with 146.87 crore, followed by Mangalwari (111.53 crore) and Laxmi Nagar (98.44 crore). Quarterly targets further expose structural issues, with 281.18 crore (38%) expected in the fourth quarter.

Financial Implications

With infrastructure demands rising and departments already grappling with budget constraints, excluding 1,392 crore from active recovery could significantly strain NMC's finances. Key civic services including road maintenance, drainage upgrades and water supply depend heavily on property tax revenue. Unless NMC expands its enforcement net to include the missing 1,392 crore, the property tax system risks remaining a diluted exercise.