Chennai pays the price as GCC loses revenue

For the last four years, Chennai has neither received marquee civic projects, such as the pedestrian plaza, nor the basics, such as new roads and parks. Each time a proposal comes up in Greater Chennai Corporation (GCC) council, mayor R Priya cites a ‘fund crunch'. But the crunch is of civic body's own making. TOI looks at ways GCC can fill its coffers without breaking a sweat.Nearly 60% of its 8,000 crore budget goes into salaries, administrative expenses, and routine operations, leaving little for civic improvements. However, the civic body has failed to monetise its assets, including parking lots, bus shelters, hoardings, and streetlights. This, coupled with penalties collected from building violations, can fetch at least 1,000 crore annually.The biggest leakage comes from parking. GCC owns 14,000 slots in prime stretches. A 2023 study showed that if vehicles occupied these for just five hours daily, the city could earn 11 lakh every day, about 40 crore a year. Yet, there is no contractor to monetise parking, nor has GCC recovered dues from its previous agency, Toorq Media Services, which defaulted on targets. Over six years, losses mounted to 240 crore. Greater Bengaluru Authority (previously BBMP) generated 225 crore through parking fees in the last financial year.Bus shelters are another gaping hole. Of GCC's 1,850 shelters, ad space was fixed at 2 lakh per annum for each 17 sqm slot. Full utilisation could have fetched 37 crore annually. Instead, the corporation earns only a few lakhs from a handful of private firms that pay diligently. The Bengaluru civic body earns 15-20 crore as ad revenue annually.Several shelters stand vandalized and broken. Bus stops in Vyasarpadi Sathyamoorthy Nagar Pillar, Thiruvottiyur, and Nandanam YMCA bus stop are in a dilapidated state and are being used as a hub for tipplers at night. These prime stops are used by at least 10,000 commuters every day. Arappor Iyakkam convenor Jayaram Venkatesan said shelters under GCC often become free publicity boards for the ruling party. "GCC should directly control them and adopt a transparent revenue model instead of faulty private contracts."A 2024 scheme to monetize three lakh street light poles and 17,000 medians, projected to earn 100 crore a year, failed as contractors found rates unattractive and tenders were not revised. At the same time, 700 illegal hoardings continue unchecked, costing the corporation at least 100 crore in lost rent and fees despite fixed licence rates of 500 per hoarding and tax of 40,000.The elephant in the room, however, remains building deviations and property taxes, as more than 60% of the city's three lakh buildings with deviations remain unsurveyed. Only 80,000 were reassessed, while 2.2 lakh residential properties await inclusion in the tax net. Darashaw, the GIS surveyor, submitted the mapping data, but with just one revenue official per zone and a lack of adequate surveyors with the land survey department, ground verification has stalled. This led to an annual loss of 400 crore. Greater Bengaluru Authority generated 4,930 crore through property taxes in the last financial year.Deputy commissioner for revenue and finance M Birathviraj said, "With the reassessment done so far, annual demand has risen by 140 crore. Other properties will be assessed soon. We are also formulating new projects for parking and ads that will roll out by next year." Officials said the govt has assured GCC of revenue inspector recruits by mid-2026 to survey leftover buildings.Former additional director of municipal administration and water supply department D S Sivasamy said the civic body should push for amendments to increase the cap on professional tax, besides tapping ad revenue. K Sadanand, a resident of Mogappair, said GCC increased taxes by 150% in urban localities, and yet failed to provide amenities.