Hyderabad Grapples with Mounting Property Tax Crisis
The financial health of Greater Hyderabad's civic administration is under severe strain as property tax arrears across its three municipal corporations have skyrocketed past the staggering figure of ₹3,000 crore. This alarming sum has now overtaken both the current fiscal year's collections and the original revenue target, creating a significant funding gap for essential urban development.
Collections Fall Short as Arrears Balloon
Before the trifurcation of the Greater Hyderabad Municipal Corporation (GHMC), the property tax collection target for this financial year was set at ₹3,000 crore. However, the combined efforts of the GHMC, Cyberabad Municipal Corporation (CMC), and Malkajgiri Municipal Corporation (MMC) have yielded only approximately ₹2,000 crore in property tax revenue so far this fiscal year. This substantial shortfall is directly impacting numerous development projects across the rapidly expanding metropolitan region.
Officials warn that the situation may deteriorate further. By the time the current One Time Settlement (OTS) scheme expires on March 31, which offers a waiver of 90% accumulated interest on arrears, the total outstanding amount could potentially cross the ₹5,000 crore threshold.
Widespread Defaults Across Property Categories
Within GHMC limits alone, property tax arrears stand at approximately ₹1,400 crore, spread across nearly 3.5 lakh individual assessments. Across all three corporations, officials estimate that between 6 to 7 lakh property owners are currently in default of their tax payments.
What is particularly concerning for civic authorities is the composition of these arrears. Nearly 30% of the total outstanding amount, representing between ₹900 to ₹1,000 crore, originates from commercial establishments. Many high-value properties and prominent real estate developers continue to delay payments despite receiving repeated notices from municipal authorities. Several well-known commercial entities feature prominently on the defaulters list.
Government Buildings Add to the Burden
Compounding the crisis is another significant category of defaulters: government buildings. There are approximately 290 state and central government buildings within GHMC limits, many of which have accumulated substantial unpaid tax dues over time. Officials estimate that government institutions collectively owe nearly ₹1,000 crore in property tax arrears.
Major defaulters reportedly include the Telangana Secretariat, various revenue department offices, Osmania Medical College, Gandhi Hospital, and prohibition and excise department buildings. Although GHMC has repeatedly communicated with various departments and managed to recover partial payments, a substantial portion of these government dues remains outstanding.
Revenue Shortfall Impacts City Development
Municipal officials emphasize that property tax represents the primary revenue source for all three corporations. With Hyderabad experiencing rapid urban expansion, increasing infrastructure demands, and the need for recurring flood mitigation works, delayed tax payments are directly impairing the city's development capacity and resilience planning.
"We have initiated the process of issuing formal notices to all defaulters," stated a senior official from the GHMC revenue wing. "If property owners fail to clear their dues despite the interest waiver offered under the OTS scheme, we will proceed with issuing distress warrants under Section 269 of the GHMC Act. Once a distress warrant is issued, the corporation possesses the legal authority to attach and auction properties to recover outstanding dues."
The mounting arrears crisis presents a critical challenge for Hyderabad's municipal administration as they balance revenue enforcement with the pressing need to fund urban infrastructure and services for the growing metropolitan population.
