The Brihanmumbai Municipal Corporation (BMC) is ramping up efforts to recover outstanding property tax dues from major defaulters as revenue continues to decline. Over the past decade, the BMC has attached 3,322 properties valued at INR 3,438 crores. The highest dues, amounting to INR 880 crores, are concentrated in areas like Prabhadevi and Worli. Recently, notices were sent to ten defaulters owing INR 600 crores, warning of property auctions if debts are not settled. The BMC is adopting a strict approach, including asset auctions, to ensure compliance and recover funds.
The Brihanmumbai Municipal Corporation (BMC) is intensifying its efforts to recover outstanding dues from major defaulters amid a decline in property tax revenue in recent years. Over the past decade, the BMC has attached 3,322 properties valued at INR 3,438 crores. The highest outstanding dues, totaling INR 880 crores, are in areas like Prabhadevi, Worli, and Mahalaxmi. Recently, notices were issued to ten defaulters collectively owing INR 600 crores, warning them to settle their debts or face property auctions.
According to BMC regulations, property taxes must be paid within 90 days of receiving the bill. If payment is not made within this period, the BMC sends a final warning notice with a 21-day deadline. After this, the civic body can take strict actions, including disconnecting water supply, confiscating properties, and auctioning assets to recover the dues. The BMC's Assessor and Collection Department has recently reviewed pending dues and is adopting a tough stance on defaulters.
Notices for property attachment have been issued under Section 203 of the BMC Act, 1888. The latest list of top defaulters includes Raghuvanshi Mills Ltd., which owes INR 119 crores; Omkar Developers Pvt. Ltd., with INR 104 crores; J. Kumar Infrastructure Ltd., at INR 71 crores; Sterling Investment Corporation Ltd., at INR 55 crores; Vimal Associates, at INR 41 crores; and Shriram Mills Ltd., at INR 33 crores, among others.
The BMC is focusing on property owners who have delayed payments despite having the financial means to do so. Notices for property seizure are being issued under Section 203 of the Mumbai Municipal Corporation Act. If payments are not made within the specified timeframe, the BMC will take further actions under Sections 204, 205, and 206 of the Act. Initially, goods from the properties will be seized and auctioned, and if taxes remain unpaid, the properties themselves will be auctioned under Section 206.
To navigate the complexities of gathering evidence against defaulters, the BMC has engaged a professional institute to assist in the recovery process. Additionally, to expedite collections, the BMC plans to auction profitable, non-movable assets belonging to defaulters. The corporation is also implementing various strategies, including social media outreach and direct engagement with residents in housing societies, to enhance tax collection efforts. Public awareness campaigns across multiple media platforms have been launched to encourage compliance.
The BMC's intensified recovery measures underscore the urgency of addressing property tax defaulters to stabilize the city's revenue streams. Ultimately, these efforts are vital for maintaining the city's infrastructure and services for its residents.
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