Chandigarh, June 19: Struggling with a financial crunch, the Municipal Corporation (MC) has intensified its property tax recovery drive by issuing notices to defaulters with dues exceeding ₹200 crore. In the first round, over 40 property owners—both commercial and residential—have been served notices for defaulting on payments amounting to more than ₹5 crore.
According to sources in the civic body, the tax wing has compiled a fresh list of defaulters using revised property tax rates. “Defaulters have been given a one-month deadline to clear their dues. If payments are not made within this period, the MC will initiate proceedings to attach their properties,” said an MC official.
The campaign comes in the wake of sharp criticism from the Comptroller and Auditor General (CAG), which recently flagged the MC’s poor tax recovery performance and the absence of an effective monitoring system. The CAG’s report pointed out that the corporation had failed to collect arrears from major institutions and departments, undermining its own financial stability.
Since property tax was introduced in Chandigarh in 2004, the dues have steadily mounted, crossing ₹200 crore this year. As per Section 138 of the Municipal Act, the Commissioner is empowered to attach, seal, or sell properties of tax defaulters.
In the next phase of enforcement, government entities will come under the scanner. “Notices will soon be served to several departments of the Punjab, Haryana, and UT administrations,” said the official. Institutions like Panjab University, the Post Graduate Institute of Medical Education and Research (PGIMER), and Punjab Engineering College are among the top defaulters, with dues collectively running into several crores. However, nearly ₹100 crore of the outstanding amount is currently tied up in litigation or disputes.
Despite the growing burden of unpaid taxes, the MC saw a promising development in the past two months, collecting over ₹62 crore during a limited-period rebate offer. This is nearly double the revenue received during the same period last fiscal year. Officials say the encouraging response highlights public willingness to pay when timely incentives are provided.
With property tax remaining the civic body’s most consistent revenue stream, the MC hopes its renewed enforcement and incentivization strategies will help plug the deficit and stabilise its finances.
