Pune's Green Building Tax Discount: Beneficiaries Double, but Compliance Questioned
Pune Municipal Corporation's (PMC) latest Environment Status Report (ESR) shows a significant increase in beneficiaries of the green building tax discount. However, experts and citizens are raising concerns about the effectiveness and compliance of these green initiatives.
PuneGreen BuildingProperty TaxEnvironmental ComplianceCivic AdministrationReal Estate PuneJul 31, 2025
The ‘green discount' of 5-10% in property tax is offered to property owners who have installed solar and vermicomposting systems. Beneficiaries crossed the 1-lakh milestone in 2020-21 for the first time and have remained above this mark since then. Despite this impressive growth, environmentalists are concerned that the civic body lacks a robust system to ensure these green building facilities are functioning properly.
Refuting these concerns, PMC officials claim they conduct surprise checks and direct property owners to maintain the facilities if any shortcomings are found. As per PMC data, the city hosted around 8.5 lakh properties prior to 2017. After the merger of 11 villages, the number increased to around 10 lakh. Following the merger of 23 additional villages in 2021, the total number of properties under PMC limits now stands at at least 12.5 lakh.
PMC has set a target of Rs2,492.83 crore in revenue from building permissions for the fiscal year 2024-25, and a similar expectation of Rs2,549.79 crore from the property tax department. Interestingly, while the property tax department collected around Rs2,360 crore in the current fiscal, the building permissions department surpassed its collection and target, generating around Rs2,600 crore. In the previous fiscal year 2023-24, the building permissions department earned over Rs2,300 crore, outpacing property tax collections of around Rs2,268 crore.
Amid the evident rise in building permissions in the city, activists are insisting that vigilance must be heightened to ensure green compliance. Social activist Vijay Kumbhar emphasizes the need for regular inspections. 'The civic body made the installation of green facilities compulsory, so many societies have done it. Now, PMC should ensure these facilities are functional,' he told TOI.
Suhas Patwardhan, chairman of the Pune District Co-Operative Housing Federation, adds, 'These facilities are the need of the hour. They are not only helping housing societies but are also good for the environment by reducing the use of fossil fuels. Our organisation creates awareness to promote such facilities in societies. However, the implementation definitely lacks consistency.'
Avinash Sakpal, head of PMC's property tax department, stated, 'The civic administration carries out surveys annually with the help of ward offices. If any property owner is found to have failed in maintaining the facilities, health officials of ward offices submit reports, and the tax discount is scrapped accordingly.'
Frequently Asked Questions
What is the ‘green building norm property tax discount'?
The ‘green building norm property tax discount' is a 5-10% reduction in property tax offered to property owners who have installed solar and vermicomposting systems in their buildings.
How many beneficiaries are there of the green building tax discount in Pune?
According to the latest Environment Status Report (ESR) by the Pune Municipal Corporation (PMC), the number of beneficiaries has doubled from around 86,000 in 2019-20 to approximately 1.5 lakh in 2024-25.
What are the concerns raised by environmentalists and activists?
Environmentalists and activists are concerned that the Pune Municipal Corporation (PMC) lacks a robust system to ensure that the green building facilities are functioning properly and are being maintained as required.
How does the PMC ensure compliance with green building norms?
The PMC conducts annual surveys with the help of ward offices. If any property owner is found to have failed in maintaining the green facilities, health officials of ward offices submit reports, and the tax discount is scrapped accordingly.
What is the current target for revenue from building permissions and property tax for the fiscal year 2024-25?
The Pune Municipal Corporation (PMC) has set a target of Rs2,492.83 crore in revenue from building permissions and Rs2,549.79 crore from the property tax department for the fiscal year 2024-25.
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