We develop a local index theory for a class of operators associated with non-proper and non-isometric actions of Lie groupoids on smooth submersions. Such actions imply the existence of a short exact sequence of algebras, relating these operators to their non-commutative symbol. We then compute the connecting map induced by this extension on periodic cyclic cohomology. When cyclic cohomology is localized at appropriate isotropic submanifolds of the groupoid in question, we find that the connecting map is expressed in terms of an explicit Wodzicki-type residue formula, which involves the jets of non-commutative symbols at the fixed-point set of the action.
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