Nashik Municipal Corporation Urges State Government to Release Rs 326 Crore in Pending Local Body Cess
The Nashik Municipal Corporation (NMC) has intensified its efforts to secure the release of approximately Rs 326 crore in outstanding local body cess (LBC) from the Maharashtra state government. This amount has been pending for the past five to six financial years, creating significant financial strain for the civic body. Officials have emphasized that the delayed funds are essential for meeting critical financial commitments, including the corporation's share of expenditure for the upcoming Simhastha Kumbh Mela in 2027 and various development initiatives across the city.
Understanding the Local Body Cess Mechanism
Under current regulations, property buyers within municipal corporation limits are required to pay a 6% stamp duty during registration. Of this total, 5% is retained by the state as stamp duty, while the remaining 1% is collected as local body cess. This 1% is subsequently transferred to the respective municipal corporations to support local governance and infrastructure projects. However, NMC has faced consistent shortfalls in receiving its entitled share, leading to a substantial accumulation of unpaid dues.
Financial Shortfalls and Outstanding Dues
Detailed financial data reveals the extent of the funding gap. During the 2025-26 financial year, the state's stamp duty department collected about Rs 150 crore under the 1% LBC in Nashik. However, NMC received only Rs 122 crore, leaving Rs 28 crore pending for that fiscal period. In the preceding year, 2024-25, the civic body was entitled to Rs 135.29 crore but received just Rs 81.92 crore, resulting in outstanding dues of Rs 53.37 crore. Cumulatively, since 2019-20, the total unpaid amount under the LBC has reached around Rs 326 crore, according to civic officials.
Urgent Need for Funds Ahead of Simhastha Kumbh Mela
The pending grant is particularly critical in light of the Simhastha Kumbh Mela scheduled for 2027. Under existing arrangements, the municipal corporation is obligated to contribute 25% of the total expenditure for this mega religious event. During the previous Kumbh Mela, the state government approved a total budget of Rs 1,050 crore, with NMC providing 25% of that amount. For the upcoming event, NMC's share is projected to be at least Rs 1,500 crore, making the release of the pending local body cess funds extremely important for financial preparedness.
An official stated, "The corporation had written to the state government about two months ago requesting the release of the pending amount, but received no response. With the financial year now concluded, NMC is preparing to send another letter demanding immediate disbursal of the entire outstanding grant." Another official added, "For the Kumbh Mela, NMC's share is expected to be at least Rs 1,500 crore. In this context, the pending grant under the 1% local body cess is extremely important for us."
Impact on City Development Projects
Beyond the Kumbh-related expenses, NMC has highlighted that adequate funds are also necessary to carry out development works across all 31 wards of Nashik. The delayed release of the local body cess has hampered progress on various infrastructure and public service projects, affecting the overall growth and livability of the city. Officials stress that timely disbursal of these funds is vital to ensure uninterrupted implementation of planned initiatives and to maintain financial stability within the municipal corporation.
