Gurugram Property Tax Arrears Near ₹1,200 Crore as MCG Serves 495 Defaulters

The Municipal Corporation of Gurugram (MCG) has served notices on 495 property tax defaulters who together owe nearly ₹1,200 crore, according to a report published on 11 November 2026. The notices went out over the past month as part of a fresh recovery drive, more than a year and a half after an audit faulted the civic body for slow action against defaulters.

Zones 4 and 5 account for almost half of the notices. A senior MCG official said interest is being charged on unpaid tax and that the drive is aimed mainly at major defaulters.

How Many Property Tax Defaulters Has MCG Served Notices, and How Much Do They Owe?

MCG has issued 495 notices, and the defaulters concerned owe nearly ₹1,200 crore in total. Spread evenly, that works out to about ₹2.4 crore per notice. That is only an average, because individual dues have not been itemised.

The MCG official said the notices mainly target large defaulters. He added that the earlier audit had also identified residential owners with relatively small outstanding amounts.

Which Gurugram Zones Have the Most Property Tax Defaulters?

Zones 4 and 5 together account for 240 of the 495 notices, or 48.5%. Zone 6 had the fewest. The shares are calculated from the zone-wise counts reported. The report gives zone totals only and does not list localities or the amount owed in each zone.

What Did the Audit Find About MCG’s Property Tax Recovery?

The audit was conducted by the office of the principal accountant general (audit), Haryana. It criticised MCG for failing to act in time against defaulters, which let dues build up. It also flagged weak record-keeping and monitoring that hampered recovery.

Its findings were first reported on 26 June 2025:

• 120 property owners each owed more than ₹1 crore, with combined dues of ₹280.6 crore.
• MCG had no records for 34 owners who together owed ₹97.2 crore.

The ₹1,200 crore now being cited covers 495 notice recipients, a larger group than the 120 owners in the audit. The two totals cannot be compared directly, and the report does not explain how they relate. MCG says it is still pursuing the dues the audit identified.

How Much Property Tax Does MCG Collect, and Where Does FY 2026-27 Stand?

MCG earned more than ₹350 crore in property tax in FY 2025-26. Its target for FY 2026-27 is ₹325 crore, and it had collected ₹213 crore, or 65.5% of that target, in the first quarter, according to the report. The official said revenue has risen compared with earlier years.

Set against those figures, the nearly ₹1,200 crore in arrears is about 3.7 times the full-year target. Property tax is a key revenue source for civic infrastructure and services, so recovery matters for what the corporation can spend.

What Happens If You Do Not Pay Property Tax in Gurugram?

Unpaid property tax attracts interest at 18% a year, or 1.5% a month, under the Haryana Municipal Corporation Act 1994, as MCG has said in earlier recovery drives.

MCG has also moved to sealing. On 5 October 2026 it sealed four commercial properties in Zones 5 and 6 over combined dues of about ₹1.51 crore, as covered in’ report on Gurugram sealing four commercial properties over tax dues. Notices usually come first, and owners who believe their property data is wrong have been able to use MCG correction camps, which were set up after a large records update in 2022.

The report does not say how much of the ₹1,200 crore is disputed or how many of the notices have led to payment. For other explainers on dues and assessment, see taxation coverage.