Nearly 2.5 lakh property owners in Lucknow are set to receive significant relief from long-standing house tax and water tax arrears. The Lucknow Municipal Corporation (LMC) is planning to introduce a one-time settlement (OTS) scheme to address dues pending with the civic body and its Jalkal department.
Scheme Details and Background
The proposed OTS scheme is modeled after similar initiatives previously implemented by the Lucknow Development Authority and the UP Awas Vikas Parishad. According to official records, pending house tax dues with the LMC have escalated to approximately Rs 700 crore, which includes nearly Rs 100 crore in accumulated interest. Meanwhile, the Jalkal department has reported about Rs 110 crore in outstanding water and sewerage dues, including surcharges.
Beneficiaries and Impact
Officials indicate that the scheme will primarily benefit property owners whose dues have multiplied over the years due to the 15% annual interest charged on unpaid house tax. Since unpaid interest is added to the principal amount, arrears continue to rise. In many cases, retrospective revisions in property assessment have further increased liabilities. The last OTS scheme was introduced in 2019, under which the entire interest component was waived, and rebates were offered for timely payment.
If the new scheme is approved, officials said it may again provide a full interest waiver. This would enable thousands of defaulters to clear their dues by paying only the principal amount, thereby improving revenue collection for the corporation. The initiative is expected to offer substantial relief to homeowners while helping the municipal body recover long-pending dues.
