Lucknow, August 10: Under the leadership of Chief Minister Yogi Adityanath, the Uttar Pradesh Government has taken a major step towards making the state's urban local bodies financially stronger and self-reliant. The Yogi government has decided to implement a One-Time Settlement Scheme (OTS) in all 762 urban local bodies of the state for the effective recovery of pending property tax, including house tax, water tax and sewer tax. Through this initiative, lakhs of taxpayers burdened with long-pending property tax dues will receive relief, while the financial position of urban local bodies will also be strengthened.
The scheme will benefit defaulters with pending property tax dues in the state's 17 Municipal Corporations, 200 Municipal Councils and 545 Nagar Panchayats. The government's objective is to ensure settlement of old tax arrears through a simple and practical mechanism, reduce the financial burden on taxpayers and minimize tax-related litigation.
The duration of the One-Time Settlement Scheme has been fixed at four months, and it will be implemented from August 15, 2026 to December 15, 2026. Urban local bodies will ensure wide publicity of the scheme and provide information to all concerned taxpayers and stakeholders between August 15 and September 14, 2026, so that the maximum number of eligible taxpayers can avail its benefits.
To provide relief to taxpayers, the government has also allowed payment of outstanding property tax under the OTS scheme in a maximum of three installments. The taxpayer will be required to deposit one-third of the total outstanding amount within 30 days from the date of implementation of the scheme. The remaining two-thirds amount can be deposited over the next two months through two monthly installments. Thus, payment of the entire amount payable under the scheme must mandatorily be completed within a maximum period of three months.
Urban Development Minister Arvind Kumar Sharma said that the state government is continuously making efforts to strengthen urban local bodies financially and make them self-reliant while providing better urban amenities to citizens. He stated that the OTS scheme is an important initiative in this direction. It will facilitate the resolution of long-pending tax arrears and provide taxpayers with a simple opportunity to settle old dues. He added that the scheme would enable effective and time-bound recovery of pending revenue by urban local bodies.
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Minister A.K. Sharma informed that the revenue collected would be utilized to improve roads, drainage, drinking water, sanitation, street lighting and other essential public amenities in cities. He stated that the government's effort is to strengthen the sources of income of urban local bodies so that they become more capable of carrying out development works. Through the OTS scheme, the government has given priority to both taxpayer convenience and the financial strengthening of urban local bodies.
