Nashik Municipal Corporation urges state for Rs 326 crore pending local body cess in view of Simhastha Kumbh Mela & development projects

Nashik: The Nashik Municipal Corporation (NMC) has been pursuing state govt for the release of Rs 326 crore pending under the 1% local body cess (LBC) for the past five to six financial years. Civic officials said the delayed funds were crucial for meeting key financial obligations, including the corporation's share of expenditure for the Simhastha Kumbh Mela scheduled in 2027 and multiple development projects across the city.As per existing rules, property buyers within municipal corporation limits pay 6% stamp duty during registration. Of this amount, 5% is retained as stamp duty by the state, while the remaining 1% is collected as local body cess and later transferred to the respective municipal corporations.During the 2025-26 financial year, the state's stamp duty department collected about Rs 150 crore under the 1% LBC in Nashik. NMC, however, received only Rs 122 crore, leaving Rs 28 crore pending for that fiscal. In 2024-25, the civic body received Rs 81.92 crore against its entitlement of Rs 135.29 crore, resulting in outstanding dues of Rs 53.37 crore.According to civic officials, the total unpaid amount under the LBC from state govt since 2019-20 has reached around Rs 326 crore. An official said, "The corporation had written to state govt 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."The officials said the funds were urgently needed, particularly in view of the Simhastha Kumbh Mela. Under existing arrangements, the municipal corporation is required to contribute 25% of the total expenditure for the mega religious event. During the previous Kumbh Mela, state govt had approved a total budget of Rs 1,050 crore, of which NMC contributed 25%."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," another official said.Apart from Kumbh-related expenses, NMC said adequate funds were also required to carry out development works across all 31 wards of the city.