BMC Issues Final Seven Day Notice To Property Tax Defaulters Owing Sixty Three Crore

Mumbai’s civic administration has escalated its property tax recovery campaign, issuing a final seven-day notice to seven major defaulters collectively owing over Rs 63 crore. The Brihanmumbai Municipal Corporation (BMC) warned that failure to settle dues within the stipulated period could trigger public auctions of their properties, a measure aimed at curbing long-standing non-compliance and bolstering the city’s revenue collection.

The move comes as part of BMC’s intensified strategy to address a substantial Rs 22,000-crore backlog in unpaid property taxes, including accumulated penalties from the past 15 years. Some defaults date back to 2010, highlighting systemic challenges in municipal revenue recovery. An official noted, “The seven-day deadline is the final step before initiating auction proceedings, although historically, a majority of dues are cleared once notice is served.” The properties under the current notice span a mix of commercial and residential holdings, reflecting the diverse nature of Mumbai’s real estate landscape. Included are oil mills with godowns in Mazgaon, land parcels in Parel, Ceejay House in Worli, commercial offices in Bandra West, a property in Malad East, Hotel Imperial Palace in Goregaon East, and a residential plot in Dahisar East. Collectively, these account for a principal property tax liability of Rs 30 crore, with penalties and interest inflating total dues to Rs 63 crore.

Authorities are exercising powers under Section 200(2) of the Mumbai Municipal Corporation (MMC) Act, 1888, which permits the compulsory sale of properties to recover unpaid municipal taxes. Auction proceedings are expected to be conducted publicly and transparently, providing a framework for enforcing compliance without disrupting urban operations. Urban policy analysts suggest that tackling chronic tax defaulters not only improves municipal finances but also strengthens governance credibility. “Ensuring compliance among large property holders is crucial for sustaining municipal services, infrastructure maintenance, and urban development projects,” an urban affairs expert explained. This enforcement also underscores the importance of equitable civic responsibility in India’s rapidly urbanising cities. Recovering property taxes supports sustainable infrastructure financing, enabling BMC to invest in essential services such as water supply, sanitation, and public transport. Additionally, transparent handling of auctions aligns with inclusive urban policy principles, providing fair opportunity while discouraging evasion.

While the BMC continues to enforce strict recovery measures, officials emphasise that compliance is achievable without auctions. Past trends indicate that most defaulters settle dues promptly once a formal notice is issued, minimising legal interventions and administrative costs. The current campaign marks a continuation of Mumbai’s broader efforts to enhance fiscal discipline, strengthen urban governance, and secure sustainable municipal financing for a growing metropolis.

BMC Issues Final Seven Day Notice To Property Tax Defaulters Owing Sixty Three Crore