Lucknow Civic Body Plans to Bring in OTS Scheme for Tax Dues

Lucknow, May 15: LMC is set to launch a one-time settlement scheme to address ₹700 crore in pending house tax and ₹110 crore in water and sewerage dues, potentially waiving interest and surcharges to help owners clear principal amounts.

Pending Dues Breakdown

According to official records, pending house tax dues with the LMC have reached around ₹700 crore, including nearly ₹100 crore in interest. The jalkal department has also reported about ₹110 crore in pending water and sewerage dues, including surcharges. The scheme is likely to benefit property owners whose dues have multiplied over the years because of the 15 per cent annual interest charged on unpaid house tax.

OTS Framework

The proposed scheme is being planned on the lines of similar OTS initiatives earlier implemented by the Lucknow Development Authority and UP Awas Vikas Parishad. The last such OTS scheme was introduced in 2019, under which the entire interest component was waived and rebates were offered for timely payment.

Expected Relief

Since unpaid interest is added to the principal, arrears continue to rise. In many cases, retrospective revisions in property assessment have further increased liabilities. If approved this time, officials said the scheme may again provide full interest waiver, enabling thousands of defaulters to clear dues by paying only the principal amount.

Revenue Boost

The scheme aims to provide relief to property owners while improving revenue collection for the corporation. By allowing defaulters to clear long-standing dues, the civic body expects to boost its financial position and enhance its ability to deliver civic services.