More than 2.24 lakh houses in Lucknow could benefit from the Lucknow Municipal Corporation’s (LMC) one-time settlement (OTS) scheme, even as the civic body aims to recover ₹ 776 crore in years-old property tax arrears and accumulated interest from these properties. The opening demand report for 2026-27 shows 2,24,749 houses have not paid their property tax.
According to official records the data shows an arrear demand of ₹ 497.42 crore against these properties, while accumulated interest demand stands at ₹ 278.59 crore.
Under the OTS scheme, property owners will have the opportunity to benefit from the waiver of interest. For residents with long-pending dues, the scheme can reduce the additional financial burden that has accumulated over the years. For LMC, the scheme offers a chance to convert a substantial portion of its pending demand into actual revenue instead of allowing arrears to continue accumulating. The interest burden is also significant.
The OTS scheme runs from August 15 to December 15, and the LMC gets a four-month window to pursue the 2.24 lakh unpaid properties and recover years-old revenue. 2.24 lakh houses form key OTS pool Municipal commissioner Gaurav Kumar said that the OTS scheme gives eligible property owners an opportunity to settle their outstanding property tax while receiving relief on applicable interest and surcharge. Zone 6 has the highest number of unpaid houses at 59,663, accounting for more than a quarter of the total unpaid properties. It is followed by Zone 3 with 39,088 houses and Zone 8 with 32,759. Similarly, Zone 7 has 23,864 unpaid houses, while Zone 1 has 19,865. Zones 2 and 4 have 19,094 and 18,554 unpaid properties respectively. Zone 5 has the lowest number, at 11,862. ₹ 776 crore recovery opportunity The zone-wise figures show that the civic body faces a substantial revenue recovery challenge. Zone 1 has the highest arrear demand at ₹ 98.65 crore, followed by Zone 8 at ₹ 97.73 crore. Zone 6, which has the maximum number of unpaid houses, has an arrear demand of ₹ 69.33 crore. Zone 1 has ₹ 72.90 crore in interest demand, followed by Zone 6 with ₹ 48.90 crore and Zone 8 with ₹ 39.11 crore.
LMC chief tax assessment officer Ashok Singh said that similar figures had emerged in previous financial years. He said that in cases where a new property tax assessment is carried out, the interest and arrears arising from the revised assessment will also be covered under the initiative.
