Nagpur: The Nagpur Municipal Corporation (NMC) is facing Rs1,919 crore unpaid property tax exposing major gaps in revenue recovery, with 4.54 lakh properties in default, some evading payment for over 25 years. The unpaid property tax is nearly one-third of the NMC’s Rs5,857 crore proposed budget for 2026-27.The scale of the default is not just recent — it is systemic and decades-old. Data reveals that Rs1,227 crore, or nearly 64% of the total outstanding amount, is locked in properties that have not paid taxes for 11 to 25 years. Another Rs473 crore is pending from defaulters in the 6-10 year bracket, while Rs169 crore remains unpaid for 2-5 years. In contrast, recent defaulters (within one year) account for just Rs29 crore, underscoring how legacy arrears have ballooned due to weak enforcement.The figures expose a troubling pattern — while the civic body routinely cracks down on small, recent defaulters, long-term and high-value defaulters continue to slip through the cracks, allowing dues to accumulate unchecked.A category-wise analysis reveals where the bulk of the problem lies. Open plots alone account for Rs414 crore in dues, making them the single largest contributor. These are followed by ‘No GIS’ properties at Rs352 crore, pointing to glaring gaps in property mapping and database integration. Residential properties contribute Rs341 crore, indicating widespread non-compliance even among individual homeowners.Equally concerning are disputed properties, which account for Rs313 crore, most of it locked in prolonged legal or administrative conflicts. State govt-owned properties owe Rs227 crore, raising uncomfortable questions about accountability within public institutions themselves.Commercial and mixed-use segments also add to the mounting burden. Non-residential properties owe Rs103 crore, while mixed-use buildings and towers together account for over Rs150 crore. Though smaller in comparison, these categories reflect a broader culture of delayed or avoided tax compliance across segments.The slab-wise breakup further highlights a skewed recovery approach. A vast majority of defaulters — over 3.21 lakh properties — fall in the lowest bracket of dues below Rs25,000, collectively accounting for Rs256 crore. However, at the other end of the spectrum, a mere 1,583 properties owing above Rs5 lakh each account for a massive Rs833 crore, making them the single largest source of unpaid revenue. However, the data prepared by NMC’s property tax dept also revealed that there are around 28,398 properties which never paid taxes and their outstanding stands at Rs259.48 crore. This stark imbalance suggests that targeting a small pool of high-value defaulters could unlock nearly half of the pending dues, yet enforcement appears disproportionately focused on smaller taxpayers, raising concerns over priorities and political will.Civic experts say the situation reflects not just administrative inefficiency but a systemic failure to enforce financial discipline over the years. “When dues remain uncollected for decades, it signals a breakdown in accountability. It also creates a moral hazard where non-payment becomes normalised,” said a former civic official. With infrastructure demands rising and finances under pressure, the inability to recover nearly Rs2,000 crore could significantly impact service delivery, from road maintenance to water supply projects. The comparison with the annual budget underscores the gravity of the crisis — a sum large enough to fund major civic works remains locked in unpaid taxes.
