Homebuyers Pay Crores and 25% in Taxes, Yet Step Out to Flooded Roads: Where Is the Money Going?
Despite paying crores and a significant portion of their property cost in taxes, homebuyers in major Indian cities like Gurugram, Bengaluru, and Mumbai face deteriorating infrastructure. Where is all the money going?
HomebuyersTaxesInfrastructureProperty PricesUrban PlanningReal Estate NewsAug 26, 2025
More than 25% of what you pay for that ₹2–10 crore home goes straight to the state government as taxes. What do homebuyers get in return? Where is all that money going?
Even as property prices in Gurugram, Bengaluru, and Mumbai skyrocket, basic infrastructure, roads, drainage, sewage, worsens year after year. (Photo for representational purposes only) (Praful Gangurde / HT Photo)
Despite the substantial taxes paid, residents in these cities continue to face numerous issues. Potholes, waterlogging, and garbage are common sights, making daily life a struggle. The disconnect between the high property values and the poor quality of public services is a growing concern.
In Gurugram, for example, the city has seen a significant increase in property values over the years, attracting both local and international investors. However, the infrastructure has not kept pace with this growth. Flooded roads and poor drainage systems are a frequent occurrence, especially during the monsoon season. Similarly, in Bengaluru, the rapid urbanization has led to a strain on the city's resources, with basic amenities like clean water and proper waste management often lacking.
Mumbai, one of India's most populous cities, faces similar challenges. The city's infrastructure is under immense pressure due to the high density of population and the lack of adequate planning. Floods, traffic congestion, and poor sanitation are common issues that residents have to deal with on a daily basis.
The question remains: where is all the money going? Homebuyers are paying a significant portion of their property cost in taxes, yet the benefits are not visible in the form of improved public services. This raises concerns about the transparency and efficiency of the local government in managing these funds.
Experts suggest that a lack of proper planning and accountability is at the root of the problem. While the government collects substantial sums in taxes, the allocation and utilization of these funds often lack transparency. There is a need for better governance and more effective use of public resources to address the growing infrastructure issues in these cities.
Homebuyers in Gurugram, Bengaluru, and Mumbai deserve better. They have worked hard to invest in their homes and communities, and they expect to see tangible improvements in the quality of life. It is time for the government to step up and ensure that the taxes collected are used effectively to provide the basic amenities that residents are entitled to.
In conclusion, the disparity between the high property values and the poor infrastructure in major Indian cities is a pressing issue that needs to be addressed. Homebuyers are paying their fair share in taxes, and they have the right to expect better. It is time for the government to take action and ensure that the funds are used to improve the quality of life for all residents.
Frequently Asked Questions
Why are homebuyers in major Indian cities facing infrastructure issues?
Despite paying high property prices and significant taxes, homebuyers in cities like Gurugram, Bengaluru, and Mumbai face issues such as flooded roads, poor drainage, and garbage-strewn streets due to a lack of proper planning and efficient use of public funds.
What percentage of the property cost goes to taxes?
More than 25% of the property cost in these cities goes directly to the state government as taxes and levies.
What are the common infrastructure issues in these cities?
Common issues include potholes, waterlogging, poor drainage systems, traffic congestion, and inadequate waste management.
Why is there a disconnect between high property values and poor public services?
The disconnect is primarily due to a lack of proper planning, transparency, and accountability in the allocation and utilization of public funds by the local government.
What can be done to improve the situation?
Improving the situation requires better governance, more effective use of public resources, and a focus on long-term urban planning to address the growing infrastructure issues in these cities.
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