Mumbai News: BMC Struggles To Recover ₹22,000 Crore In Outstanding Property Tax Dues, Plans Property Auctions

Mumbai: Despite setting a record in property tax collection for the financial year 2024-25, the BMC has struggled to recover Rs 22,000 crores in outstanding dues accumulated over 15 years. To address this, the civic body has issued an Expression of Interest (EOI) to invite government-approved valuation firms to assess properties in 24 wards for potential auction sales of defaulters' assets.

The BMC's Assessment and Collection (A&C) Department has identified major defaulters, including prominent real estate developers, government corporations, and civic offices. The outstanding dues, which have accumulated since 2010, have now reached Rs 22,000 crores, including penalties over 15 years.

This amount also encompasses Rs 550 crores owed by agencies like Maharashtra Housing and Area Development Authority (MHADA), Mumbai Metropolitan Region Development Authority (MMRDA) and others.

As per BMC regulations, property taxes must be paid within 90 days of receiving the bill. If payment is not made within this period, the BMC issues a final warning notice with a 21-day deadline.

Following this, the civic body has the authority to take stringent actions, such as disconnecting water supply, confiscating properties, and auctioning assets to recover dues. Accordingly, the BMC has now issued notices to attach properties of big defaulters in an effort to recover the dues.

"The list of defaulters is updated every two months, and the outstanding amount has been increasing, as some of the major defaulters take the matter to court. Some firms settle their dues after receiving attachment notices; however, if they fail to do so, the BMC can take further steps like seizure and auction. Auctions will target profitable, non-movable assets of defaulters that are not involved in any litigation. We are also appointing a firm to value these properties ward-wise," said a senior civic official.

Meanwhile, since January 2025, the BMC has begun sending property tax bills to commercial properties in slum areas. So far, around 800 bills have been issued to large units, including godowns and factories operating within slums.

Attached properties: 3,945

Outstanding dues : Rs. 22,000 crores

Auctions were to be held in the first phase for 67 properties.

Value over Rs 355.19 crores

Last auction held: 2012

Property tax earned in 2024–25: Rs 6,400 crores against target of Rs. 6,200 crores.

Total properties in city - 2.5 lakhs

Total tax payers - 10 lakhs.