GMADA tightening noose around defaulters, but itself owes crores in property tax to MC

3 min readMohaliUpdated: Jun 19, 2026 09:30 AM IST

Municipal Corporation officials said property tax remains one of the civic body’s most important revenue streams. (Source: File/ Representational)

While the Greater Mohali Area Development Authority (GMADA) has been cracking down on defaulting builders and developers over pending dues, the authority itself is facing questions over unpaid property tax owed to the Municipal Corporation (MC), Mohali.

According to Municipal Corporation sources, GMADA has not deposited property tax on several of its properties for years, resulting in dues running into crores of rupees. Officials said the civic body issues notices to GMADA annually, but the authority has neither cleared the outstanding amount nor provided complete details of its properties for proper tax assessment.

MC officials maintain that GMADA owns numerous developed and undeveloped properties across the city. However, the absence of a comprehensive property record has hampered accurate tax calculations. Sources said that after adding interest and penalties, the outstanding amount is estimated to have crossed crores.

Record sought, details still awaited

In a letter sent in March this year, the civic body once again sought complete details of GMADA-owned properties. The civic body requested information regarding hockey stadiums, sports complexes, swimming pools, Verka booths, liquor vends, commercial booths, showrooms, vacant plots, leased properties and land already sold by the authority.

Officials said the information is essential for determining the actual tax liability and strengthening the Corporation’s revenue base.

Questions over recovery drive

The issue has gained attention days after GMADA publicly released a list of defaulting builders and developers, claiming that more than Rs 1,000 crore is pending from various real estate entities and warning of strict recovery action.

Property tax is a key revenue source

Municipal Corporation officials said property tax remains one of the civic body’s most important revenue streams. The MC collected Rs 56.75 crore in property tax during the last financial year ending March 31. In the current financial year 2026-27, nearly Rs 6 crore has already been collected by mid-June, with officials expecting the figure to rise substantially in the coming months.

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When contacted, GMADA ACA Amrinder Singh Malhi said that the authority had received a letter from the Municipal Corporation and that the matter had been forwarded to the Head Office for completing the necessary process.

Meanwhile, when contacted regarding the issue, Estate Officer (EO) Aman Gupta said that he had assumed charge only on Monday. Referring to the corporation’s communication, he stated that the complete details would be shared with the Municipal Corporation at the earliest. He added that any property tax due as per the law would be cleared after the required assessment and verification process.