1. GIS survey revealed nearly 70,000 buildings in Hyderabad have evaded property tax for decades, causing an estimated annual revenue loss of Rs 600 crore.
2. Over 93,000 commercial properties pay residential tax rates due to collusion between tax officials and property owners, resulting in significant financial leakage.
3. A commercial complex in Saroornagar was billed just Rs 12 lakh instead of Rs 1.5 crore
4. GHMC plans to issue notices to unassessed property owners, impose penalties, collect retrospective taxes, and hold corrupt officials accountable to recover lost revenue.

A major property tax scam has surfaced in Hyderabad after a Geographic Information System (GIS) survey by the Greater Hyderabad Municipal Corporation (GHMC) exposed large-scale tax evasion and corruption. The survey, officially launched on July 30, 2024, revealed that nearly 70,000 buildings across the city have never been brought under the property tax net, despite being constructed and occupied for decades. Officials estimate that this has resulted in an annual revenue loss of around Rs 600 crore to the civic body.

The survey data shows that there are a total of around 19.5 lakh properties under GHMC’s jurisdiction. Of these, nearly two lakh properties are officially listed as commercial, while the rest fall under residential categories. However, officials discovered that over 93,000 properties using commercial electricity connections continue to pay residential property tax, causing significant revenue leakage. 

Investigations suggest that tax inspectors and bill collectors colluded with property owners — misclassifying commercial properties as residential, underreporting built-up areas, and manipulating assessment records — all in exchange for bribes. These malpractices are reportedly most rampant in Serilingampally and LB Nagar zones.

In one glaring case from Saroor Nagar, a commercial complex that should have paid Rs 1.5 crore annually was billed only Rs 12 lakh, allegedly due to bribery. GHMC officials believe that if all unassessed and misclassified properties are brought into the tax system, the civic body’s revenue could increase by nearly Rs 1,000 crore this fiscal year.

To recover the lost revenue, GHMC is preparing to issue notices to the owners of all unassessed buildings, seeking details such as construction dates and building permissions. Structures without valid permissions will be declared illegal constructions, and the corporation plans to collect three years’ worth of property tax with a 100% penalty. Even properties with valid permissions will face retrospective tax collection for the past three years in a single installment.

Officials also intend to trace and hold accountable the tax inspectors and bill collectors who served in these areas during the period of non-assessment.