Gurgaon Audit Report Reveals Major Property Tax Lapses; ₹97 Crore Stuck Due to Untraceable Ownership Data

An audit of the Municipal Corporation of Gurugram (MCG) has revealed that the civic body does not possess records for 34 property owners who collectively owe ₹97.2 crore in unpaid property taxes. The lapse significantly impacts the MCG’s ability to recover outstanding dues, the report noted.

The findings were part of an audit conducted in February 2025 by the office of the principal accountant general. The report stated that the absence of owner names and details made it nearly impossible to issue recovery notices or initiate legal proceedings.

The audit report observed that without the names of the property owners, the likelihood of serving notices or initiating legal proceedings was minimal, making the recovery of the outstanding ₹97 crore in property tax from these 34 properties highly uncertain.

The report further 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 also 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