Hyderabad Civic Bodies Issue 1.64 Lakh Tax Notices as FY 2025-26 Nears End
Hyderabad Civic Bodies Issue 1.64 Lakh Tax Notices

Hyderabad Civic Authorities Ramp Up Property Tax Recovery Drive

The Core Urban Region (CURE) civic authorities in Hyderabad have significantly escalated their campaign to recover outstanding property taxes as the financial year 2025–26 approaches its conclusion. In a major enforcement push, municipal bodies have dispatched a substantial volume of formal notices to property owners who have failed to settle their dues.

Massive Notice Issuance and Collection Shortfall

Over the past fifteen days, the three primary civic corporations—Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC), and Malkajgiri Municipal Corporation (MMC)—have collectively served approximately 1.64 lakh demand notices to defaulting property owners. This aggressive notification drive comes amid concerning statistics regarding tax compliance across the metropolitan area.

Out of the nearly 28.8 lakh property tax assessments recorded within the city, an estimated 40% remain unpaid for the current financial year. The scale of the pending amount presents a serious fiscal challenge for municipal authorities. Against a total demand of around ₹6,387 crore, which encompasses both current year dues and accumulated arrears, the corporations have so far managed to collect only ₹2,186 crore.

Official Warnings and Enforcement Measures

GHMC Commissioner RV Karnan issued a stern warning, indicating that strict legal action will be initiated under the provisions of the GHMC Act against property owners who persistently neglect their long-pending tax obligations. "Property tax reminders are being systematically sent to citizens via SMS on alternate days to ensure maximum awareness," explained a senior GHMC official.

The official further detailed the enforcement protocol: "Warrant officers have been specifically appointed at the circle level to oversee recovery operations. Action will proceed following the issuance of distress warrants. If necessary, the Revenue Recovery Act will be implemented against the most significant defaulters to ensure compliance."

Positive Collection Trend and Settlement Incentives

Despite the substantial shortfall, property tax collections within the CURE area have demonstrated a positive year-on-year growth. Commissioner Karnan highlighted that by the corresponding period in the previous financial year, total collections amounted to ₹1,984 crore, whereas the current financial year has seen collections reach ₹2,186 crore thus far, marking a noticeable improvement.

Authorities are actively encouraging taxpayers to utilize the One-Time Settlement Scheme (OTS), which offers a substantial 90% rebate on interest for all pending property tax dues. Commissioner Karnan emphasized that this scheme will remain operational only until March 31, urging citizens to promptly avail themselves of this limited-time opportunity to reduce their financial burden.

Collections specifically attributed to the OTS scheme across the three corporations currently stand at an impressive ₹322 crore, indicating significant uptake among property owners seeking to resolve their outstanding liabilities under favorable terms.

The concerted recovery effort underscores the civic bodies' determination to enhance municipal revenue streams as the fiscal year-end deadline looms, balancing enforcement with taxpayer assistance programs to achieve optimal collection outcomes.