Gaya Municipal Corporation Grapples with Massive Revenue Loss from Unregistered Properties
Gaya Municipal Corporation (GMC) is confronting a severe financial crisis, with nearly 30,000 unregistered holdings causing an annual revenue loss exceeding Rs 12 crore. Official records reveal a stark disparity: while approximately 70,000 properties are registered within the GMC jurisdiction, electricity connections indicate the actual number of holdings surpasses one lakh.
The Scale of the Revenue Drain
These unauthorized households, many constructed years or even decades ago, continue to benefit from essential civic services including sanitation and road connectivity provided by the municipal corporation. However, the civic body receives no revenue from these properties as they remain outside the holding tax net. From the existing 70,000 registered holdings, GMC collected around Rs 30 crore in municipal taxes during the 2025-26 financial year.
By this calculation, the presence of 30,000 unregistered properties translates to a direct revenue loss of more than Rs 12 crore in a single financial year alone. This substantial shortfall severely impacts the corporation's ability to fund infrastructure development and maintain public services.
Conflicting Guidelines Create Administrative Paralysis
Gaya Municipal Commissioner Abhishek Palasia acknowledged the significant losses stemming from unauthorized colonies and holdings. He attributed the persistent problem partly to confusion surrounding the regularization process for such properties.
Municipal officials explained that the dilemma originates from two sets of seemingly contradictory guidelines issued by the urban development department. In one communication, the department has pragmatically encouraged municipal bodies to regularize unregistered or unapproved holdings and colonies.
However, in another notification, the same department has taken a principled stand against illegal constructions, explicitly discouraging regularization due to their inherently unlawful nature. These conflicting directives have created substantial uncertainty among civic officials regarding the appropriate course of action.
Calls for Clear Policy Resolution
Commissioner Palasia stated he would seek clear guidelines on registering holdings constructed without following due legal procedures, such as obtaining building map approvals. Activist Syed Shad Alam, also known as Sullan Bhai, emphasized that the ambiguity surrounding unregistered holdings is counterproductive and requires immediate resolution.
"The municipal corporation or the urban development department should either order demolition of illegal structures or regularize them after imposing penalties," Alam asserted. He argued that if regularization occurs through a penalty route, the municipal body would benefit in multiple ways.
"On one hand, it would receive a substantial amount as a one-time penal fee, and its regular income would also increase significantly as newly registered holdings would pay municipal taxes consistently," Alam explained. This approach could transform lost revenue into a sustainable income stream while addressing the legal status of thousands of properties.
The situation highlights the urgent need for coherent policy direction to resolve the longstanding issue of unregistered holdings, which continues to drain municipal resources and hinder urban development planning in Gaya.
