NDMC cracks down on property tax defaulters

The civic body said that despite repeated notices, these defaulters have not cleared their payments, prompting the council to take stricter action.
New Delhi Municipal Council.
New Delhi Municipal Council.
Updated on
2 min read

NEW DELHI: The New Delhi Municipal Council (NDMC) has identified 3,200 property owners who have failed to pay property tax for three consecutive years, with dues totalling around Rs 200 crore.

The civic body said that despite repeated notices, these defaulters have not cleared their payments, prompting the council to take stricter action.

Under NDMC regulations, 380 defaulters have already been issued 30-day show-cause notices. If they fail to respond or make payments, NDMC may initiate property attachment, sealing, or account attachment proceedings. Additional reminders will also be sent before any coercive action is taken.

As part of a sealing drive conducted over the last three days, the civic body has attached 13 properties in Connaught Place for non-payment of property taxes. This includes prominent establishments in blocks A, B, D and E of the market.

Similar sealing drives had occurred in markets across Lutyen’s Delhi last year just before the end of the 2023-24 financial year. Traders in the area have long complained that the NDMC demands excessive taxation from shops and have written to the council demanding a uniform tax regime across Delhi based on the Unit Area Method (UAM).

The unit area method (UAM) for property tax calculation was implemented in MCD areas in April 2004. Under this system, tax is determined based on the unit area value per square meter, factoring in the location, property age, structural type, and occupancy status.

Meanwhile, the NDMC follows two approaches—the unit area method and the actual or comparable rent method.

The UAM, introduced in 2009, is the preferred choice for around 90% of taxpayers, while the remaining 10% have their tax assessed based on comparable or actual rental values.

With the March 31 tax deadline approaching, NDMC has urged all property owners to clear their dues promptly to avoid penalties and legal action. In a move to assist taxpayers and ensure smooth property tax collection, the council has announced that its Property Tax Collection Counters and Tax Office will remain open on all Saturdays and Sundays in March 2025.

This decision comes as the financial year 2024-25 nears its end, allowing residents additional time to clear pending dues. According to the NDMC officials, tax counters at Palika Kendra (Sansad Marg), Gole Market, and RK Puram will operate beyond normal working hours, except on gazetted holidays. These counters will also accept payments for outstanding electricity, water bills, and estate property dues from NDMC-area residents.

To avoid last-minute congestion, NDMC has advised property owners and service users to make payments in advance. Online payment options remain available for added convenience. The civic body manages nearly 15,600 properties within its jurisdiction.

Notably, 1,000 properties are exempt from taxation.

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