GCC clears Rs 300 crore dues to contractor, Rs 1,700 crore pending

CHENNAI: The Greater Chennai Corporation has reduced its outstanding dues to contractors by Rs 300 crore from Rs 2,000 crore in July by utilising the collected property taxes to settle payments.

Additionally, the civic body aims to collect another Rs 200 crore through a month-long special tax collection drive ending on July 31.

A senior Chennai Corporation official said, "In the previous year, multiple works were carried out under capital expenditure beyond our limits. With the collected property taxes, we have been settling contractor payment dues."

The civic body has been conducting a month-long special tax collection camp from July 3 to collect taxes from 14,23,653 property owners. So far, about 7,10,285 property owners have paid their taxes.

"As of July 22, through the special tax collection camps, GCC has collected Rs 137 crore. On the same date in 2025, the civic body had collected Rs 52.36 crore. We are working toward our target to collect Rs 200 crore by the end of the camp," the official said.

R Rama Rao, president, Greater Chennai Corporation (GCC) Contractors' Association, clarified, "The corporation has paid contractors Rs 200 crore after deducting the three months' interest".

He added, "The corporation cannot meet its financial commitments without special grants and loans from the state government. During previous regimes under MK Stalin and J Jayalalithaa, special grants and loans of Rs 500 crore each were provided to the civic body."

Also, Rs 100 crore was paid to Urbaser Sumeet after they urged the corporation to clear its pending dues, said another contractor.

Property owners can clear their pending and current taxes through the GCC website, mobile app, tax collectors, government e-seva centres, UPI service and through the WhatsApp number 9445061913, says the official.