UP Municipal Corp Faces Backlash Over Inflated Tax Bills, Misses Collection Target

Thousands of property owners in the city are reporting that they have been issued highly inflated property tax bills without receiving prior information or the mandatory notice stipulated under Section 213 of the Uttar Pradesh Municipal Corporation Act. The unexpectedly high bills have stunned building owners, and the resulting confusion has severely impacted the municipal corporation's tax collection.

Impact On Tax Revenue

The inability of property owners to get their inflated bills resolved has led to a widespread refusal to pay, leaving the tax department's cash counters deserted.

Financial Year 2025-26: Seven months into the financial year, the corporation has collected only Rs 33 crore against an annual target of Rs 110 crore.

Significant Contributor: Of the amount collected, Rs 9 crore (which includes water and sewer tax) was paid by a single entity, RAF Vedvyaspuri.

Property Base: The corporation oversees 400,000 residential and commercial properties and is attempting to bring 145,000 new properties into the tax net. So far, bills have been distributed to approximately 25,000 owners in the current financial year.

Violation Of Section 213 Alleged

At the core of the issue is the alleged non-compliance with Section 213 of the Municipal Corporation Act.

Legal Requirement: This section mandates that before any change is made to a property's tax assessment, the owner must be issued a personal notice to file an objection.

Owner Allegations: Building owners claim they were sent arbitrary bills, which show a significant difference between the old and new tax amounts, based on a recent Geographical Information System (GIS) survey. They allege that the corporation failed to invite objections by issuing the required Section 213 notice.

Corporation's Response: When visiting the municipal office, property owners are told by the Tax Assessment Officer, Tax Superintendent, and Revenue Inspector that the increase is based on the GIS survey.

Stakeholder And Public Complaints

Residents and trade associations have formally raised objections to the process.

Joint Trade Association: President Ajay Gupta met with Chief Tax Assessment Officer (CTAO) SK Gautam on Monday. He insisted that the corporation must issue Section 213 notices and provide a 30-day period for objections and hearings before distributing bills. Gupta also criticized the new single-page self-assessment form, stating it is "very difficult to fill out" compared to the previous booklet that included circle rates and assessment instructions.

Sanjeev Kumar (Dashmesh Nagar Resident): "My building's property tax was Rs 1,181 last year, which has been increased to Rs 5,186 this time. I was not informed by notice on what basis this increase was made." He added that when he went to the corporation office, he was given a self-assessment form he did not know how to fill out, and "there is no hearing at the corporation."

Raman Kathuria (Shopkeeper): "A property tax bill of Rs 18,845 has been sent in my name for six shops in Devpuri. I sold four of the shops several years ago." He stated that when he objected, officials cited the GIS survey, which still shows six shops, and confirmed the bill was sent without a Section 213 notice.

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Municipal Corporation's Official Stance

Chief Tax Assessment Officer SK Gautam addressed the allegations:

Notices: Gautam claimed that Section 213 notices "were issued to approximately 40 per cent of building owners" after the GIS survey and that they are "in the process of issuing them to the remaining property owners."

Public Notice: He stated that the corporation had also published a public notice regarding the matter.

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Resolution: "Everyone will be given an opportunity to file objections. Those who have an objection to the increased bill should come with the bill and file their objection. If they are unable to fill out the self-assessment form, a corporation team will help them fill it out at all zonal offices."