The hopes of the Greater Hyderabad Municipal Corporation (GHMC) to fill the gap in its coffers through the one-time settlement scheme for property tax dues have come up against a brick wall.
The scheme could elicit little response from defaulters, as evident from the insignificant collections so far.
With less than one week to the deadline, the corporation is short of over 90% of its targeted collections through the scheme.
Total payable
While the total amount payable under the scheme has been close to ₹1,550 crore over the years, actual collections failed to cross even the ₹100-crore mark.
The one-time settlement (OTS) scheme, which came into force on August 1, offered property tax assessees an opportunity to avail themselves of 90% waiver on the penal interest amount, if the accumulated dues are cleared at one go.
The scheme is applicable to dues up to the assessment year 2019-20, with a deadline of September 15 for payment.
At the time of seeking permission from the government for announcement of the scheme, Greater Hyderabad Municipal Corporation (GHMC) officials hoped for realisation of at least ₹1,000 crore of the tax dues through it.
The dues have accumulated often over issues which can be resolved easily, such as vacant premises, decrepit buildings, and disputes related to property, apart from disputes in assessment, say officials.
5.4 lakh properties
Over 5.4 lakh properties in the city are embroiled in such issues, and the total tax arrears inclusive of the 10% of the accumulated interest amount payable amounted to ₹1,546 crore.
Majority of these properties are located in Charminar zone, followed by Khairatabad and Secunderabad zones. When it comes to the amount of arrears, Khairatabad zone leads with ₹660 crore, followed by Secunderabad zone at ₹249 crore.
The scheme could elicit response from fewer than 50,000 property owners, officials said.
“Perhaps, the timing of the scheme’s announcement was faulty. Several people are experiencing financial difficulties, and flow of liquid cash is low. We may have to seek government’s nod to extend the deadline to enable property owners to pay,” said an official on condition of anonymity.