BMC Seizes Properties Worth Over Rs. 2000 Crore from Major Defaulters

In an extensive drive against property tax defaulters, the Brihanmumbai Municipal Corporation (BMC) has seized 3,564 properties valued at Rs. 2,237 crore over the past decade. Despite the significant volume of seized assets, none of these properties have been auctioned in the past ten years. To move forward, the BMC has recently appointed a specialized consultant to validate the ownership and valuation of 67 properties worth up to Rs. 355 crore, with the expectation of a report on potential auctions within the coming month.

Additional Assets

To enhance recovery efforts, the BMC has hired a private agency to identify additional immovable properties owned by defaulters and evaluate the assets of 67 specific individuals. These defaulters collectively owe the BMC over Rs. 355 crore, comprising Rs. 268 crore in unpaid property tax and an additional Rs. 87 crore in penalties. During a recent meeting, officials instructed the agency to submit a report within one month, detailing the number of auctions completed so far.

Action Against Defaulters

The BMC has implemented a series of measures to address unpaid property taxes. According to the rules, property taxes must be settled within 90 days of receiving the bill. If payments remain outstanding, the BMC can issue notices, disconnect water services, confiscate properties, and proceed with auctions to recover dues. Although the last auction took place in 2012, past auctions often missed revenue targets. To improve collection, the tax assessment department now plans to focus on auctioning high-value, non-movable properties from major defaulters, enlisting the help of a professional institute to manage legal and administrative complexities.

Revenue Collections Decline

Despite being the BMC’s second-largest source of revenue, property tax collections have seen a decline in recent years. This drop is largely due to exemptions for residential properties up to 500 sq ft and the lack of a rate revision since the 2015-16 fiscal year. For the 2024-25 financial year, the civic body set a property tax revenue target of Rs. 4,950 crore, of which 30% has already been collected. To meet this target, the BMC has intensified its focus on recovering dues from major defaulters, signaling a determined approach to boost revenue and enhance civic resources.