Pune Municipal Corporation (PMC) has collected ₹45.57 crore in property tax for 753 properties through its credit note system in the 2024-25 financial year. However, the overall utilization of these credit notes remains lower than expected.
The PMC develops city roads under the Development Plan (DP), with many projects executed under the Public-Private Partnership (PPP) model. Instead of direct payments, PMC issues credit notes to contractors, which can be used to pay municipal dues such as property tax, water bills, and other charges.
Limited Use Despite Availability
Though developers and contractors have started using these notes, the total amount utilized is significantly lower than the total credit issued by PMC.
Contractors Sought Major Defaulter Data
To make the credit note system more effective, contractors requested a list of major property tax defaulters from the PMC, so they could sell the notes to these defaulters at a discounted rate. However, PMC refused to share the data, leaving contractors with unused credit notes.
Recent Increase in Utilization
Over time, PMC introduced minor concessions on credit notes, making them more attractive to large defaulters. As a result, ₹45.70 crore in property tax payments were made through credit notes in the past year, helping clear outstanding dues while providing some financial relief to tax defaulters.