Telangana Officials Block Petrol Pump Over Unpaid Municipal Tax

In a dramatic effort to enforce overdue municipal tax payments, officials in Tandur town of Telangana's Vikarabad district recently staged an unusual protest. They placed garbage-laden tractors and municipal trucks around a petrol station that has not paid about Rs 82,000 in municipal dues for more than five years.

Municipal authorities say repeated notices went unanswered, leading to the blockade as a visible display of their enforcement intentions. They have also warned that similar protests could occur at the homes and businesses of other persistent defaulters.

This action in Tandur, Vikarabad, is part of a broader campaign across Telangana to improve tax compliance and recover long-standing dues, especially in urban centres like Hyderabad.

The Greater Hyderabad Municipal Corporation (GHMC), along with Cyberabad Municipal Corporation (CMC) and Malkajgiri Municipal Corporation (MMC), is dealing with substantial property tax arrears. Reports suggest that total arrears across these three municipal bodies have exceeded Rs 3,000 crore and may reach as much as Rs 5,000 crore once the current one-time settlement (OTS) scheme ends at the close of March.

For the financial year 2025-26, the combined tax demand (including current dues and arrears) in Hyderabad was approximately Rs 6,387 crore, with civic authorities having collected about Rs 2,200 crore so far.

Within GHMC limits, arrears amount to around Rs 1,400 crore, spread across roughly 3.5 lakh properties, with nearly 30% of the dues stemming from commercial properties.

In the capital city, GHMC has also intensified property tax enforcement by sealing over 100 large commercial properties that have defaulted on payments as the 2025-26 fiscal year approaches its end.

Among the high-profile cases were luxury hotels and educational institutions with outstanding liabilities running into crores of rupees.

Authorities report that some establishments that were sealed promptly paid their dues following enforcement actions, demonstrating the impact of stricter measures.

GHMC sources also highlighted a limited-time One-Time Settlement (OTS) scheme, which offers a significant waiver on interest for property tax arrears if the full principal amount is paid by a specific deadline. This initiative aims to clear legacy dues and boost municipal revenues.

Municipal and district officials in Hyderabad have been instructed by the state government to escalate compliance checks and pursue defaulters. These efforts are balanced with outreach programmes encouraging taxpayers to settle their dues before punitive measures are enforced.

Government officials state that the drive aims both to strengthen civic finances and to ensure that urban local bodies can fund essential services.