Prayagraj Civic Body to Launch OTS Scheme for House Tax Arrear in June 2026

Prayagraj, May 27: Prayagraj Municipal Corporation is launching an OTS scheme in early June, waiving interest on pending house tax dues for over 90,000 property owners. The four-month scheme aims to recover ₹125 crore in outstanding taxes.

Financial Impact

Under the proposed scheme, interest on pending house tax dues for both residential and commercial properties will be waived. Officials said nearly ₹90 crore in accumulated interest is likely to be waived. The city has over three lakh registered properties, of which nearly two lakh owners regularly deposit tax. Around 90,000 to one lakh property owners currently have outstanding dues exceeding ₹125 crore, including nearly ₹90 crore as interest.

Government Approval

The proposal gained momentum after a video conference between Urban Development minister AK Sharma and mayors across Uttar Pradesh regarding implementation of the OTS scheme. Prayagraj Mayor Ganesh Kesarwani said in-principle approval has been received and the government order is expected within a week.

Scheme Scope

The mayor stated that the demand for an OTS scheme was pending for several years. A similar scheme was introduced seven to eight years ago, but it was limited only to commercial properties. This time, residential properties have also been included. The corporation has fixed a target of collecting ₹160 crore in house tax during the current financial year.

Extended Areas

The corporation is focusing on newly expanded urban areas after 97 gram sabhas were merged into city limits. More than 1.79 lakh properties have been identified in these extended areas. Officials clarified that house tax will not be collected from areas lacking basic civic amenities such as electricity, drinking water, roads and drainage facilities.