The Varanasi Municipal Corporation (VMC) has announced it will not take any coercive action against religious institutions, following protests by a group of seers against notices for clearing dues of sewer and water tax. The decision comes after demonstrations at the Patalpuri Math in Narharpura, where seers demanded tax exemptions for places of worship.
Municipal Commissioner Clarifies Tax Structure for Religious Sites
Addressing a press conference on Thursday, Municipal Commissioner Himanshu Nagpal provided detailed clarifications on the tax policy. He stated that no house tax is charged from charitable schools, temples, and other religious sites. For these institutions, only 50% of the actually assessed water and sewer tax is applicable.
Nagpal explained the shift to integrated billing. Previously, separate house tax bills were issued for buildings, while the Jal Kal department issued separate sewer and water tax bills. However, following a Uttar Pradesh government order dated May 9, 2025, instructions were given to issue integrated bills in municipal corporations, combining house tax, water tax, and sewer tax under property tax. Consequently, for the first time in the financial year 2025-26, these integrated bills are being issued.
Protest Triggers Review and Exemption Process
The controversy erupted after a demand notice was issued on November 7 regarding property tax arrears at the Patalpuri Math. In response, representatives of the Math submitted an application for tax exemption on November 9. The VMC took immediate cognizance and exempted the Math from house tax.
However, the issuance of notices to other Mutts and religious sites led to a larger protest. On Wednesday, a group of seers gathered at Patalpuri Mutt under the leadership of Jagadguru Balkdevacharya Maharaj. Their demands included special religious status for Ayodhya, Mathura, and Kashi, complete tax exemption for temples, and the dismissal of officials who sent attachment notices. They warned of widespread demonstrations if their demands were not met.
Legal Framework and Ongoing Identification Drive
The Municipal Commissioner cited the Municipal Corporation Act 1959, specifically sections 175 and 177, which state that places of worship are exempt from house tax, but water and sewer taxes are not automatically exempted. He clarified that if any place of worship falls under the 80G category, it is eligible for a 50% exemption on sewer and water tax.
To streamline the process, the VMC is actively working to identify all places of worship to ensure they receive rightful exemptions. So far, in the Kotwali zone alone, 40 temples, 6 mosques, and 1 gurudwara have been identified. Commissioner Nagpal firmly stated that the municipal corporation is not going to take any action against any place of worship and is committed to resolving the issue through proper identification and application of exemptions.
The drive to issue demand notices for buildings with property tax arrears exceeding Rs 20,000 is part of an effort to achieve collection targets in the remaining approximately four months of the financial year 2025-26. The VMC's latest assurance aims to balance its fiscal responsibilities with the sensitivities surrounding religious institutions in the holy city.
