The Chandigarh Municipal Corporation (MC) has started the process for preparing a list of property tax defaulters. According to sources, once the list of sector-wise defaulters has been prepared, the civic body will start issuing notices.
The MC collected Rs 61 crore in property tax over the last two months by offering attractive rebate benefits, marking the highest-ever collection made during the corresponding rebate periods of past years. During the assessment period from April 1 to May 31, property owners were eligible for 20 per cent rebate on residential property tax and 10 per cent rebate on commercial property tax.
With the rebate period over, defaulters shall now be liable to pay 25% penalty over and above the prescribed tax amount, along with interest at 12% per annum with effect from April 1, 2026, till the end of the month during which the payment is made. An official said the property tax collected by the MC played a significant role in strengthening civic infrastructure and enhancing public services across the city.
“Defaulters are given time, as prescribed by law, to pay the amount. In case the amount is not paid in the stipulated time, the MC would initiate the process for attachment of their properties. As per Section 138 of the Municipal Act, the commissioner is authorised to attach, sell or seal the property of the tax defaulter," added the official.
During the last financial year, Chandigarh MC faced a huge financial crunch, due to which developmental works were stopped. The MC even failed to recarpet the city’s roads. However, with efforts made towards generating revenue via tax and penalties and additional grant received from the UT, the revenue of the MC is set to increase in this financial year.
