NAGPUR: After nearly nine years, the Nagpur Municipal Corporation (NMC) is gearing up to conduct a citywide property survey using Artificial Intelligence (AI) to correct discrepancies in property tax assessments and enhance revenue generation. The last comprehensive survey was undertaken in 2016, even though govt norms require one every five years.
In a pilot project conducted recently in Laxmi Nagar zone, the civic body used AI tools to collect property data and cross-verify it with its existing database. The pilot yielded 9,000 property entries, of which 2,000 were identified as new properties, while 7,000 showed structural or usage modifications not reflected in NMC’s records.
To verify the accuracy of AI data, tax inspectors from Laxmi Nagar zone physically surveyed 380 randomly selected properties. The ground verification revealed that 12 were entirely new constructions, while 215 had undergone changes such as extensions, new floors, or alterations in use—from residential to commercial—without corresponding tax updates. This exercise confirmed that AI-based data collection accurately captured on-ground developments and could play a crucial role in keeping property tax records current.
Under the existing assessment system, NMC calculates property tax by determining the taxable value of land and buildings based on parameters such as latitude-longitude coordinates, type and age of construction, and nature of use. However, with rapid urban development and continuous alterations in properties across Nagpur, manual updating has proven inefficient and outdated.
Officials said the civic body now plans to replicate the Laxmi Nagar model across all ten zones. The citywide survey will combine AI data mapping with door-to-door inspections to finalise accurate taxable property values. The initiative will exclude open plots but will comprehensively cover all types of constructed properties.
NMC officials believe the AI-backed system will help capture real-time property changes, enabling timely tax reassessments and adding crores to annual revenue. Property tax is the civic body’s largest income source, but poor collection efficiency and irregular updates have left arrears exceeding Rs900 crore (excluding penal interest).
The citywide AI survey is expected to begin early next year after completion of the tendering and technical framework process. Civic officials said the updated property database will not only ensure fairer tax assessments but also strengthen transparency and financial discipline in the municipal system.
