North India Statesman
In a major festive windfall for urban households and commercial property owners, the Chief Minister Yogi Adityanath-led Uttar Pradesh government has granted financial exemptions exceeding Rs 31.06 crore in accumulated penalties, surcharges, and interest. Rolled out through the Urban Development Department under the One-Time Settlement (OTS) scheme, the initiative has already approved tax relief for 29,292 urban property owners across the state. The scheme is designed to help citizens settle years of disputed or pending municipal tax liabilities without bearing the weight of compounding penalties, providing an average financial saving of approximately Rs 12,655 per beneficiary.
How the One-Time Settlement (OTS) Scheme Operates
The OTS scheme was launched by the state administration on August 15, offering a dedicated four-month window that remains operational until December 15. Under this initiative, taxpayers with outstanding house tax , water tax , and sewer dues are exempt from paying compounding late-payment penalties and accrued interest, provided they clear their primary principal tax liability. By removing prohibitive surcharge burdens, the government offers a straightforward, transparent mechanism for property owners to settle their tax ledgers and secure official clearance certificates from their local urban bodies.
Widespread Response Across Municipal Corporations and Nagar Panchayats
The OTS initiative has witnessed massive public engagement across urban local bodies (ULBs) in the state, with over 48,751 total applications logged so far:
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Municipal Corporations (Nagar Nigams): Recorded the lion’s share of interest with 40,480 applications submitted across 17 municipal bodies.
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Nagar Palika Parishads & Panchayats: Nagar Palika Parishads logged 6,033 applications, while smaller Nagar Panchayats registered 2,160 requests.
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Jal Sansthans (Water Boards): Received 394 applications specifically seeking settlement of longstanding water and sewerage tax disputes.
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Property Category Breakdown: Residential property owners constitute the vast majority of applicants, accounting for 31,002 submissions (over 81% of total applications). Commercial properties accounted for 3,785 applications, alongside 3,235 filings for mixed-use establishments.
Lucknow Municipal Corporation Leads the Recovery Drive
Among all 17 municipal corporations in Uttar Pradesh, the Lucknow Municipal Corporation (LMC) has emerged as the frontrunner in both claim approvals and revenue realization. LMC has logged 4,159 settlement applications, approving 3,723 claims while mobilizing nearly Rs 6.70 crore in direct property tax recovery. Across the state, against a registered total demand of Rs 73.80 crore under processed OTS applications, urban local bodies have collected over Rs 24.51 crore in net revenue. Urban Development Secretary Anuj Kumar Jha stated that the revenue realized from the drive will be funneled directly into upgrading local municipal infrastructure, including clean piped drinking water, modernized street lighting networks, and road repair projects across urban wards.
