Chennai Corporation can tackle its ₹2,000-crore payment backlog, says civic body

With outstanding payments of around ₹2,000 crore for completed works yet to be cleared, the Greater Chennai Corporation (GCC) has tightened its belt in an attempt to cut down expenditure and increase revenue by intensifying property tax collection.

Deputy Mayor M. Magesh Kumaar said the ₹2,000 crore pending amount was for completed project works. Of this, about ₹450 crore was owed to Urbaser Sumeet, one of the private firms outsourced to handle solid waste management, he said. He urged GCC Commissioner G.S. Sameeran to request Chief Minister C. Joseph Vijay to consider releasing allocations under special funds to ease the pressure.

Standing Committee (Taxation and Finance) Chairperson Sarbajaya Das said that to clear the dues, the GCC would assess under-assessed commercial and other large properties, including those measuring over 2,000 sq.ft and 3,000 sq.ft, using GIS-based data to improve tax collection. But, many large-scale new projects are on hold, she added.

According to a senior official, the GCC has doubled its daily property tax collection target from ₹5 crore to ₹10 crore to improve its own-source revenue. Against the current half-year demand of about ₹980 crore, roughly ₹500 crore has been collected as of July 1, 2026. Additional staff, extended collection hours and more point-of-sale devices have been deployed for door-to-door collection of arrears, he added.

“The current financial pressure is temporary. The GCC expects its financial position to improve by September, when further development projects could be considered,” the official said.

Salary of workers priority

“GCC’s priority now is to ensure no worker, including those in conservancy, sanitation, and NULM, loses a month’s salary. We have kept conservancy workers’ wages aside, so capital projects will proceed slowly,” the official told The Hindu.

The GCC decided to slow down spending on construction of new projects and make payments to contractors in stages with the Trade Receivables Discounting System (TReDS). Contractors can obtain early advances through the Receivables Exchange of India Limited, the official stated.

The GCC has so far collected around ₹500 crore against its half-year property tax demand of about ₹980 crore.

“The GCC receives ₹80-82 crore every month through State Finance Commission devolution. Around ₹360 crore towards three quarters of stamp duty and surcharge is yet to be released by the State. We have requested the State government to release these dues. Beyond this, funds cannot be expected from the State,” he said.