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The Brihanmumbai Municipal Corporation has intensified recovery action against large property tax defaulters in Mumbai by issuing attachment and seizure notices under the municipal law. The civic body has identified several major developers and entities with long-pending dues running into hundreds of crores. Officials have warned that movable assets may be seized first, followed by auction of properties if payments are not made. Property tax remains a key revenue source for civic services, and the BMC has urged defaulters to clear arrears through available payment mechanisms.
The Brihanmumbai Municipal Corporation (BMC) has stepped up enforcement against major property tax defaulters across Mumbai as part of its efforts to recover long-pending dues. The civic body has issued attachment and seizure notices to several large property owners and developers who have failed to clear outstanding tax amounts despite repeated reminders and follow-ups. Advertisement
Action has been initiated under provisions of the Mumbai Municipal Corporation Act, which allow the BMC to recover unpaid property tax through a structured legal process. Officials explained that the recovery mechanism begins with demand notices and personal communication, followed by formal attachment notices. If dues are still not paid within the stipulated period, the civic body is authorised to seize movable assets located on the premises.
In cases where recovery through movable assets is insufficient, the law permits the auction of the property itself. Civic officials clarified that this step is taken only after all procedural requirements are completed and adequate notice is given to the defaulter. The current round of action reflects a stricter approach, especially towards large entities with the financial capacity to pay but who have continued to delay settlement.
Among the largest defaulters identified by the BMC is Raghuvanshi Mills Limited, which has outstanding property tax dues exceeding INR 140 crore. Other entities facing action include Rajhans Associates, Ashapadara Developers, Sumer Buildcorp Pvt. Ltd., DBS Realty, SD Corporation and Galaxy Corporation. Together, these accounts form a significant portion of the civic body's unpaid property tax arrears.
Property tax is the single largest source of revenue for the BMC and is critical for funding essential civic services such as road maintenance, waste management, healthcare facilities and public infrastructure. While collections during the current financial cycle have shown progress, officials said a sizeable amount remains unpaid, much of it tied to high-value commercial and redevelopment properties.
Officials noted that defaulters have been provided multiple opportunities to clear dues, including access to online payment systems and settlement channels. The decision to move towards seizure and auction reflects the civic body's assessment that softer recovery measures have not yielded results in several high-value cases.
The crackdown also aligns with similar enforcement drives seen in other major cities, where municipal authorities have tightened compliance to improve fiscal discipline. BMC officials reiterated that timely payment of property tax is essential to maintain service delivery standards and reduce pressure on public finances.
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