Property tax revision drive marred by claims of extortion by GHMC staff

Revision of property tax has raised concerns about how the process is being handled on the ground by Greater Hyderabad Municipal Corporation (GHMC) field staff. Bill collectors and tax inspectors, on the pretext of revising the tax, are allegedly resorting to extortion of money from gullible property owners.

A few unlettered owners, unable to fully understand the contents of the revision notice or the rights available to them, say they have ended up paying hefty amounts to GHMC staff.

“I have been paying tax to the tune of ₹10,000 for my two-storey house in Old City for several years. Recently, someone from GHMC came and served a notice to my brother who stays at the place, informing him that the tax would go up by ₹8,000 per annum. They demanded ₹10,000 bribe to not carry out the revision, and out of fear, my brother paid up,” Mohd. Shareef (name changed), a property owner from Old City.

A query listed for the Question & Answer session of the GHMC general body meeting on Tuesday sought to know about the policy of property tax revision. Hayatnagar corporator K.Navajeevan Reddy enquired about the basis of the revised tax, and why the staff were forcing residents to pay without prior notice.

The reply to Mr.Reddy’s query informed that during the 2024-25 fiscal, property tax revision was done for a total of 71,747 properties, which resulted in enhancement of tax revenue from ₹47.74 crore to ₹130.34 crore — an increase by 2.7 times. In the current year, up to November 13, revision was done for 17,905 properties, resulting in collective tax enhancement from ₹31.62 crore to ₹76.82 crore, clocking 2.42 times increase.

Revision, though a continuous process, has gained pace recently after the GIS survey was initiated by the corporation. Post the drone survey and ground truthing, notices are being served for revision of taxes, which is being taken advantage of by the field staff to carry out the alleged extortion.

According to the reply provided by the GHMC Commissioner, identification of under-assessment is done in four ways. Traditionally, it was through field inspections, but of late, the GIS survey is providing more data. Thirdly, the sub-registrar office, at the time of property re-registration, is comparing the plinth area mentioned in the sale deed document, with the same mentioned in the property tax records, to levy higher tax.

These apart, applications received through Mee Seva centres or the GHMC website are another way through which tax is revised. GHMC is empowered to revise tax retrospectively for five half years preceding the current half year.

However, prior to revision, the Deputy Commissioner concerned issues a notice duly calling for records from the owner of the property, the reply said. After revision, a special notice is issued calling for objections from the owner within 15 days. if no objection is received, the revision is deemed as final. In case written objection is received, a hearing is conducted and speaking orders are issued finalising the revision.