The BMC has stepped up efforts to recover dues from major defaulters following a decline in property tax revenue in recent years. Over the past decade, 3,322 properties worth Rs. 3,438 crores have been attached. The highest outstanding dues, totaling Rs. 880 crores, are in areas like Prabhadevi, Worli, and Mahalaxmi. Recently, notices were sent to 10 defaulters owing Rs. 600 crores, with a warning to clear dues or face property auctions.
As per BMC regulations, property taxes must be paid within 90 days of receiving the bill. If the 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. The BMC’s Assessor and Collection Department recently conducted a review of pending dues and has adopted a firm approach towards defaulters.
The BMC has issued notices for property attachment under Section 203 of the BMC Act, 1888. The list released on Thursday includes top defaulters such as Raghuvanshi Mills Ltd owes Rs. 119 crore, Omkar Developers Pvt. Ltd. - Rs. 104 crore, J. Kumar Infrastructure Ltd. - Rs. 71 crore, Sterling Investment Corporation Ltd. - Rs. 55 crore, Vimal Associates - Rs. 41 crore, Shriram Mills Ltd. -Rs. 33 crore among others.
Due to the complexities involved in gathering evidence against defaulters, the BMC has enlisted the help of a professional institute to assist in the recovery process. To expedite the recovery process, the BMC has decided to auction the defaulters' profitable, non-movable assets.
Attached properties (since 2010): 3,322
Value: Rs. 3,438 crore
Auctions to be held: 67 seized properties
Value: Rs. 355.19 crore
Last auction held: 2012
Property tax earned in 2023–24: Rs. 4,856 crore
Target for financial year 2024-25 - Rs. 4,950 crores
Highest defaulters in these wards.
G South Ward (Worli, Prabhadevi, Mahalaxmi, Lower Parel, Curry Road) - 437...Rs. 880 crores.
K West Ward (Andheri West, Jogeshwari West, Vile Parle West, Juhu, Versova) - 366 ....Rs.493 crores.
H East (Santacruz, Khar, Bandra East) - 136...Rs. 408 crores.