Gurgaon: More than a year and a half after an audit flagged serious lapses in MCG’s handling of property tax defaulters and delays in recovery action, the civic body has issued notices to 495 defaulters who collectively owe nearly Rs 1,200 crore in outstanding dues. The notices were issued over the past month as part of a fresh recovery drive.In the latest drive, Zone 4 accounted for the highest number of notices, with 125 defaulters served, followed by Zone 5 with 115. Zone 1 saw 75 notices, while Zones 2 and 3 recorded 72 and 71, respectively. Zone 6 had the lowest number, with 37 notices.The audit, conducted by the office of the principal accountant general (audit), Haryana, had criticised MCG for failing to take timely action against defaulters, allowing substantial tax dues to accumulate. It also flagged the corporation’s poor record-keeping and monitoring mechanisms, which hindered recovery efforts.The findings of the audit, reported by TOI on June 26, 2025, identified 120 property owners who individually owed more than Rs 1 crore, with their combined liabilities amounting to Rs 280.6 crore. The audit also found that MCG had no records of 34 property owners who collectively owed Rs 97.2 crore.Despite the findings, the corporation is still pursuing recovery of these dues. Property tax is one of MCG’s key revenue sources and helps fund civic infrastructure and public services.A senior MCG official said the corporation’s property tax revenue had increased compared with previous years and that efforts to recover outstanding dues had been stepped up. “Interest is being charged on unpaid taxes, and our focus is on major defaulters. The audit had identified defaulters across categories, including residential property owners with relatively small outstanding amounts,” he said. The official added that nearly 500 notices had been issued, primarily targeting major defaulters.MCG earned more than Rs 350 crore in property tax revenue in FY 2025-26. For FY 2026-27, it has set a target of Rs 325 crore. The civic body has already collected Rs 213 crore, or 65.5% of its annual target, in the first quarter.
