The Municipal Corporation of Delhi (MCD) has denied reports that the Municipal Corporation has exempted people from paying property tax. The MDC also said that all property owners and occupiers should do so as per the existing laws. In an official statement issued on Friday, the urban body asked the citizens to not pay heed to misleading news on various social media platforms.

Issuing a statement, the MCD said, “Property tax is payable by all occupants and owners, and no exemption is given in its payment,” Amid the mounting financial challenges, including pending salaries of municipal employees and dues of contractors, property tax is a crucial revenue source, contributing nearly one-fourth of its total income.

The MCD had to issue the clarification after several people inquired about the possible exemption. He said that the tax structure for the financial year 2024-25 was finalised in February, while the charges for the financial year 2025-26 were fixed in a meeting on February 13, 2025.

With dues of over Rs 14,000 crore, the civic body emphasised the need for financial stability to maintain crucial civic services such as sanitation, road maintenance and drainage systems. The MCD has urged all property owners and occupiers to file their property tax returns on a self-assessment basis to avoid penalties by March 31, 2025.

Earlier in the week, a heated debate took place between Aam Aadmi Party and BJP members in the MCD House meeting on Tuesday over the validity of the session and the introduction of two important resolutions by the AAP. At that time, the AAP made a major demand of property tax waiver and regularisation of thousands of contract employees.

After the assembly proceedings, Aam Aadmi Party Mayor Mahesh Kumar Khinchi said in a press conference that the House has passed a proposal to regularize all contract workers in the MCD. He said that there were more than 70 AAP councillors in the House, so there was the required quorum for the meeting. He said that the session started on time, but was disrupted again due to chaos. BJP leaders rejected the mayor’s claim and said that the proposals were not passed through the correct legal process.

BJP leader of opposition Raja Iqbal Singh said, “The official procedure for passing the resolution was not followed. The mayor’s claim is baseless.” Later in the evening, Singh wrote a letter to MCD commissioner Ashwani Kumar demanding that the day’s proceedings be declared “null and void”.

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