Hyderabad Municipal Body Uncovers Massive Property Tax Evasion Through Advanced Drone Survey
The financially strained Greater Hyderabad Municipal Corporation (GHMC) has made a startling discovery through its technological intervention, identifying more than one lakh property owners who have collectively evaded municipal taxes exceeding Rs 100 crore. This widespread tax avoidance was executed through systematic under-assessment of property values over multiple years, significantly impacting the civic body's revenue streams.
GIS-Based Survey Reveals Extent of Tax Evasion
This revelation emerged from GHMC's comprehensive Geographic Information System (GIS)-driven survey conducted between August 2024 and December 2025. The municipal corporation employed sophisticated drone imagery and high-resolution mapping technologies to assess over six lakh properties across Hyderabad. The technological approach enabled officials to detect discrepancies that traditional methods might have overlooked.
Hotspots of Under-Assessment Identified
The survey findings pinpointed specific municipal circles where property tax evasion was most concentrated. Serilingampally, Chandanagar, Moosapet, Kukatpally, and LB Nagar emerged as the primary areas with the highest incidence of under-assessed properties. These regions have experienced rapid urbanization in recent years, characterized by high-rise constructions and increased commercial activity that apparently outpaced proper tax documentation.
An official familiar with the matter explained, "This pattern of evasion largely occurred between 2020 and 2023 when GHMC permitted self-assessment of properties. The revision in rules led to numerous property owners failing to submit updated details about their properties."
Systematic Evasion Tactics Uncovered
The investigation revealed several methods property owners employed to reduce their tax liabilities:
- Commercial buildings and rental complexes with multiple tenants where owners collected rent from numerous occupants but declared only a few units for taxation purposes
- Conversion of residential buildings into commercial establishments without updating official records to reflect the change in property usage
- Properties approved as godowns being operated as retail stores to benefit from lower tax rates applicable to storage facilities
Officials noted that most defaulters were commercial property owners or landlords operating rental complexes with multiple tenants, suggesting organized efforts to minimize tax obligations.
Discrepancies Between Approved Plans and Actual Structures
The GIS survey exposed significant deviations from approved building plans and actual constructions on the ground. Civic officials reported discovering:
- Buildings with additional residential floors constructed without proper approvals
- Substantial under-reporting of plinth areas to reduce taxable square footage
- Large commercial properties exceeding 10,000 square feet being declared as residential units
- Properties paying tax for only 3,000 to 3,500 square feet when their actual area was much larger
A taxation wing official provided context: "For properties that should ideally be paying ₹10,000 to ₹15,000 annually in taxes, owners were paying barely ₹5,000. This discrepancy represents massive revenue loss for the municipal corporation."
Expanding Investigation and Data Integration
GHMC officials suspect the final count of defaulting properties could be substantially higher than currently identified. Anurag Jayanthi, Additional Commissioner (IT & Revenue) at GHMC, explained: "There are close to 20 lakh properties within GHMC limits. While we have identified over one lakh under-assessed properties from six lakh verifications, we expect this number to rise as the city-wide survey continues in coming months."
In a significant move to enhance verification capabilities, GHMC has integrated Property Tax Identification Number data with electricity service connections from TGSPDCL (Telangana State Southern Power Distribution Company Limited). This integration allows officials to cross-verify property usage patterns and occupancy details against electricity consumption data, creating a more comprehensive picture of actual property utilization versus declared status.
Historical Context and Regulatory Changes
The tax evasion pattern coincides with a period when GHMC had suspended issuing notices under Section 213 of the GHMC Act, 1955. This section requires property owners to furnish detailed information about plinth area, nature of usage, and sanctioned building plans for proper assessment or reassessment of property tax. The temporary relaxation in enforcement created an environment where property owners could avoid updating their records without immediate consequences.
The current technological survey represents GHMC's effort to reclaim lost revenue and establish a more accurate property tax database. As the survey continues across Hyderabad's approximately 20 lakh properties, municipal officials anticipate discovering more instances of under-assessment and tax evasion, potentially increasing the estimated revenue loss beyond the current Rs 100 crore figure.
