A large number of residential buildings under the Bhopal Municipal Corporation (BMC) are being let out for commercial purposes, which is denting the revenue generation of the civic body. There are more than one lakh properties in the State capital where commercial activities are being conducted after taking permission for residential building. There has been no change in their land use. The reason for this is tax evasion by the property owners. Due to no physical verification, the civic body is losing crores of rupees every year. If accurate calculation of the use and construction area of the building is done, then the revenue collection of the municipal corporation will increase.

Property tax is levied in the city on the basis of the construction of the building and its use. But people give wrong information of total construction to evade property tax. On the other hand, if commercial establishments are running in the residential buildings, then their information is also hidden. Even if the ward staff comes for physical verification, they do not take action. Because the property owner has given all the information to the ward staff while depositing the property tax.

There are a total of five lakh properties in the State capital, out of which more than 3.50 lakh property owners have constructed 30 to 80 percent more than the permission. But their property tax is being collected only on the basis of the permission given by the building permission branch. In the current financial year, the municipal corporation has set a target of collecting Rs 346 crore as revenue from property tax. If property tax is verified in different areas of the city by the municipal corporation, then an additional income of Rs 100 crore will increase every year. Ekta Agarwal, Deputy Commissioner (BMC), said that complaints have been received earlier also about wrong information in the calculation of property tax. Physical verification of properties will be done at the zone level. After this, additional tax will be imposed after revising the property tax.