Nagpur: The Nagpur Municipal Corporation’s (NMC) first major property auction drive has exposed the scale of its enforcement gap. Despite a staggering Rs 938.7 crore in unpaid property tax (excluding penal interest) for 2024-25, the civic body has initiated auction proceedings against just 106 properties, a mere 0.002% of the 4.6 lakh defaulters in Nagpur.
According to official data, NMC had issued 13,224 recovery warrants aimed at collecting Rs 126.35 crore. Of these, 11,613 warrants were successfully served, covering dues worth Rs 106.95 crore. The effort yielded partial results: 5,143 property owners cleared Rs 34.86 crore in dues, while 3,519 properties were attached to recover Rs 30.60 crore. Notices for 736 properties were published, targeting another Rs 16.08 crore.
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However, the auction process, touted as a strict measure, has barely scratched the surface. Of the 106 properties shortlisted for auction, 67 are in the Mangalwari zone (Rs 1.39 crore), 27 in Satranjipura (Rs 16.13 lakh), and 13 in Lakadganj (Rs 55.55 lakh). Together, these auctions aim to recover just over Rs 2 crore, insignificant compared to the mounting arrears.
With 6.87 lakh registered properties under its jurisdiction, NMC saw 4.6 lakh owners default on taxes this year. Against a target of Rs 325 crore, the civic body managed to collect Rs 300 crore. In comparison, the total arrears are almost three times last year’s collection of Rs 318 crore, underscoring systemic weaknesses in tax recovery.
A senior civic official admitted that isolated auction drives won’t solve the problem. “We need a data-driven, tech-supported approach. Unless tax administration is modernized and penalties enforced strictly, the gap between demand and recovery will keep widening,” the official said.
Urban finance experts suggest a multi-pronged strategy: Improved taxpayer databases, inter-departmental coordination, stronger follow-ups on non-payment, and incentives for timely taxpayers. Public awareness campaigns, they say, could also help shift attitudes toward compliance.
With civic finances already stretched and infrastructure projects stalling for lack of funds, NMC’s financial health hinges on scaling up enforcement. While the current auction initiative is a step forward, experts warn that without systemic reforms, business as usual will keep the city trapped in a cycle of poor collections and worsening services.
