Telangana govt’s property tax arrears to Hyderabad corporation balloon to over Rs 5,500 cr

The pending property taxes to be paid by the health department, for instance, stand at Rs 1,185.18 crore as it has been unpaid for over 23 years. Similarly, Rs 894.92 crore is due from the prohibition and excise department as it has not paid property taxes for over 21 years.

Various state-run educational institutions have not paid property taxes for over 16 years and the pending dues stand at 384.66 crore, according to the RTI reply received by FGG. The police department has not paid property taxes to the GHMC for the last 12 years and currently owes the civic body Rs 420 crore.

Among the state-owned undertakings, the Hyderabad Metro Water Supply and Sewerage Board (HMWSSB) has not paid property taxes to the GHMC in over four years and currently owes the corporation Rs 69.86 crore. The list of defaulters also includes Hyderabad Metropolitan Development Authority, Hyderabad Metro Rail, T S Road Transport Corporation, TSIDC, Transco, Housing Board, Waqf board, museums and the zoo.

M Padmanabha Reddy, the secretary of FGG, pointed out that despite regular demand notices being issued by the GHMC, the heads of different departments remain unmoved. For instance, the prohibition and excise department adds Rs 35,000 crore to the state’s revenues annually but has not paid property tax dues for more than 21 years.

Reddy said the main revenue for local bodies come from taxes. According to him, the state government is starving the civic body by not paying property taxes and refusing to release funds as recommended by the state finance commission. “It is nothing but an attempt on part of the state government to turn the GHMC into a dummy organisation. If this money is released, the corporation would be able to provide better civic amenities,” Reddy told indianexpress.com.

The forum has written to the chief secretary requesting him to instruct the heads of departments to clear the pending property taxes dues.