Hyderabad Municipal Corporation Uncovers Massive Property Tax Evasion Through Advanced Drone Survey
The financially strained Greater Hyderabad Municipal Corporation (GHMC) has made a startling discovery through its comprehensive GIS-based survey, identifying more than one lakh property owners who have collectively evaded property tax amounting to over Rs 100 crore. This widespread tax evasion was accomplished through systematic under-assessment of properties spanning several years, significantly impacting municipal revenues.
Drone Technology Reveals Systematic Tax Evasion Patterns
Between August 2024 and December 2025, GHMC conducted an extensive survey utilizing drone imagery and high-resolution mapping technology to assess over six lakh properties across Hyderabad. The technological approach allowed municipal authorities to identify discrepancies that traditional assessment methods had missed for years.
The survey findings revealed that the majority of under-assessed properties are concentrated in specific municipal circles that have experienced rapid urban development in recent years. Serilingampally, Chandanagar, Moosapet, Kukatpally, and LB Nagar circles emerged as primary zones where property tax evasion was most prevalent, coinciding with areas that witnessed substantial high-rise construction and commercial expansion.
Self-Assessment Policy Loophole Exploited by Property Owners
According to GHMC officials, the tax evasion largely occurred between 2020 and 2023 when the municipal corporation implemented a self-assessment policy for properties. During this period, GHMC temporarily suspended issuing notices under Section 213 of the GHMC Act, 1955, which typically requires property owners to submit detailed information about plinth area, nature of usage, and sanctioned building plans for proper tax assessment.
"The revision in assessment rules created an opportunity for numerous property owners to avoid submitting updated details or disclosing significant changes made to their properties," explained a senior GHMC official. "This policy gap was systematically exploited, leading to substantial revenue losses for the municipal corporation."
Commercial Properties and Rental Complexes at Center of Evasion
Investigations revealed that most of the under-assessed properties are commercial buildings or rental complexes with multiple tenants. Property owners collected rent from numerous occupants while declaring only a fraction of the units for tax purposes, thereby significantly reducing their tax liability.
Officials documented several patterns of evasion:
- Conversion of residential buildings into commercial establishments without updating official records
- Properties approved as godowns being used as retail stores to qualify for lower tax rates
- Large commercial buildings exceeding 10,000 square feet being declared as residential properties
- Substantial under-reporting of plinth areas to minimize tax calculations
"For properties that should ideally be paying Rs 10,000 to Rs 15,000 annually in taxes, owners were paying barely Rs 5,000," revealed an official from the taxation wing. "This systematic under-assessment has resulted in massive revenue losses for the municipal corporation over several years."
Discrepancies Uncovered Through Technological Verification
The GIS survey exposed significant deviations between approved building plans and actual structures on the ground. Drone imagery identified numerous buildings that had added residential floors without proper approvals or had substantially under-reported their plinth areas.
Anurag Jayanthi, Additional Commissioner (IT & Revenue) at GHMC, provided context about the scale of the issue: "There are close to 20 lakh properties within GHMC limits. While we have identified more than one lakh under-assessed properties from six lakh verifications, we anticipate this number will increase as our city-wide survey continues in the coming months."
Integrated Data Approach Enhances Detection Capabilities
In a significant technological advancement, GHMC integrated Property Tax Identification Number (PTIN) data with electricity service connections from TGSPDCL. This integration allowed officials to cross-verify property usage patterns and occupancy details, leading to the identification of numerous additional under-assessed properties across Hyderabad.
The data integration has already yielded substantial results:
- 14,999 properties underwent detailed field verification
- Additional revenue collection of Rs 7.40 crore has been recovered
- Continued verification is expected to substantially increase revenue recovery
Recovery Efforts and Future Implications
GHMC has initiated recovery proceedings by issuing notices to identified defaulters, demanding immediate clearance of outstanding dues. The municipal corporation expects the final count of defaulters to be significantly higher than current figures as the survey progresses.
The comprehensive survey represents a major step toward modernizing property tax assessment in Hyderabad, moving from traditional methods to technology-driven approaches that minimize human error and intentional evasion. The findings highlight the critical need for continuous monitoring and regular property assessments to prevent similar revenue losses in the future.
As Hyderabad continues its rapid urban expansion, municipal authorities emphasize the importance of accurate property assessment for sustainable civic development and infrastructure maintenance. The recovered revenues are expected to contribute significantly to improving municipal services and addressing the financial challenges faced by GHMC.
