Nagpur: In a glaring indicator of mounting financial stress, the Nagpur Municipal Corporation (NMC) is grappling with a staggering Rs 1,919 crore in unpaid property tax, owed by as many as 4.54 lakh defaulting properties across the city. The outstanding amount is equivalent to nearly one-third of Nagpur’s proposed budget of Rs 5,857 crore for the financial year 2026–27.
Official data reveals that long-term defaulters form the bulk of the arrears. Properties that have not paid tax for 11 to 25 years alone account for Rs 1,227 crore. Those defaulting for six to ten years owe Rs 473 crore, while dues from properties unpaid for two to five years stand at Rs 169 crore. Even in the last one year, Rs 29 crore remains uncollected, pointing to persistent gaps in recovery mechanisms. At the extreme end, properties that have not paid taxes for over 25 years still owe Rs 18.81 crore.
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Apr 272026 - Time 10.30Hrs
A category-wise analysis shows that open plots top the list with Rs 414 crore in pending dues, followed by properties lacking Geographic Information System (GIS) records at Rs 352 crore. Residential properties account for Rs 341 crore, while disputed properties owe Rs 313 crore. Notably, government-owned properties contribute Rs 227 crore to the arrears, raising questions about compliance by public authorities themselves.
Non-residential establishments owe Rs 103 crore, while mixed-use buildings and towers collectively add over Rs 150 crore to the unpaid amount.
A closer look at the distribution of defaulters reveals a stark imbalance in enforcement. Over 3.21 lakh properties, each owing less than Rs 25,000, together account for Rs 256 crore and are often the primary targets of recovery drives. In contrast, just 1,583 high-value properties, each with dues exceeding Rs 5 lakh, collectively owe Rs 833 crore, nearly half of the total arrears, yet reportedly face far less scrutiny.
Adding to the concern, NMC records indicate that 28,398 properties have never paid property tax even once, accumulating dues of Rs 259.48 crore. Experts say the civic body’s tendency to pursue smaller, easier recoveries while overlooking large, chronic defaulters has significantly worsened the situation over the years.
Civic analysts warn that unless the NMC adopts a firm and equitable recovery strategy, the massive revenue gap will continue to strain the city’s finances. The unpaid amount, they note, could have been channelled into critical infrastructure projects such as road development, drainage systems, and essential civic services.
Officials also pointed out that property tax rates in Nagpur have remained unchanged for nearly 15 years, despite provisions mandating revision every five years. A lack of political will and a tendency to avoid unpopular decisions have prevented the corporation from tapping potential revenue growth.
Compounding the crisis are rising salary expenditures and inconsistent funding support from the State Government, placing the civic body under increasing financial pressure. The growing burden of unpaid taxes has now emerged as a key challenge for Nagpur’s urban governance and future development.
