Gurgaon Audit Unveils Massive Property Tax Lapses; ₹97 Crore at Stake
An audit of the Municipal Corporation of Gurugram (MCG) has exposed significant lapses in property tax collection, with ₹97 crore stuck due to missing owner records. The issue highlights the need for better administrative oversight.
Property TaxMunicipal Corporation Of GurugramAudit ReportTax DefaultersAdministrative EfficiencyReal EstateJun 27, 2025
The report stated that the absence of owner names and details makes it nearly impossible to issue recovery notices or initiate legal proceedings. Without the names of the property owners, the likelihood of serving notices or initiating legal proceedings is minimal, making the recovery of the outstanding ₹97 crore in property tax from these 34 properties highly uncertain.
The audit report recommended that the MCG coordinate with revenue authorities to identify the defaulters and pursue collection. It observed that no effective steps had been taken by the corporation to address the issue over time, leading to the accumulation of dues. According to the audit, there are 120 property tax defaulters in total, each with dues exceeding ₹1 crore. The cumulative pending amount from these defaulters stands at ₹280.6 crore. In addition, the audit highlighted unpaid fire tax worth ₹18.4 crore and development charges amounting to ₹35.6 crore.
When contacted, an MCG official confirmed that efforts were underway to retrieve and verify the records of the unidentified property owners. However, no timeline was provided for when the data recovery would be complete. The report has raised questions about administrative efficiency, especially given that property tax remains a key revenue stream for the municipal body. In the financial year 2024–25, MCG collected ₹232.9 crore in property taxes. For the ongoing fiscal, it has set a target of ₹275 crore.
City councillor Kuldeep Yadav termed the development unacceptable. He said that the MCG’s inability to track and act against large-scale defaulters reflects serious negligence in the civic body’s financial management. He called for accountability and structural corrections within the administration. Apart from property tax, MCG’s revenue is also derived from stamp duty and advertisement charges, both of which are under scrutiny in recent audits for efficiency and compliance.
The audit report is expected to be tabled in the next standing committee meeting, where further discussions on corrective action and administrative lapses are likely to take place.
Frequently Asked Questions
What is the main issue highlighted in the audit report of the Municipal Corporation of Gurugram (MCG)?
The main issue highlighted in the audit report is that the MCG does not possess records for 34 property owners who collectively owe ₹97.2 crore in unpaid property taxes.
How much is the total amount of unpaid property taxes from the 120 defaulters mentioned in the report?
The cumulative pending amount from the 120 property tax defaulters stands at ₹280.6 crore.
What steps has the MCG taken to address the issue of missing owner records?
The MCG has confirmed that efforts are underway to retrieve and verify the records of the unidentified property owners, but no timeline has been provided for when the data recovery will be complete.
What other sources of revenue does the MCG have besides property tax?
Apart from property tax, the MCG’s revenue is also derived from stamp duty and advertisement charges.
What is the financial target set by the MCG for property tax collection in the ongoing fiscal year?
The MCG has set a target of ₹275 crore for property tax collection in the ongoing fiscal year.
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