The Brihanmumbai Municipal Corporation (BMC) has intensified its efforts to recover outstanding property taxes by targeting major defaulters. On Friday, the civic body attached 18 under-construction buildings belonging to DBS Realty in Chandivali’s Sangharsh Nagar, Kurla, due to unpaid property taxes amounting to Rs.178.64 crore. This action is part of BMC’s broader initiative to address significant property tax arrears across Mumbai.
BMC’s Enforcement Measures
Vishwas Shankarwar, Joint Municipal Commissioner of the Assessment and Collection Department, stated that the BMC has served notices to DBS Realty and will inform the CT survey officer to raise a plinth, preventing the developer from selling the attached properties. These under-construction buildings will have their titles withheld until the outstanding property taxes are settled. If the dues remain unpaid within 21 days, the BMC will proceed to auction the properties to recover the owed amount.
Wider Crackdown on Defaulters
This move against DBS Realty is part of a larger crackdown by the BMC on property tax defaulters. In recent months, the civic body has issued notices to several prominent real estate developers and government corporations, collectively defaulting on property taxes amounting to Rs.900 crore. Notable entities include the Life Insurance Corporation (LIC), Kamala Mills, and the Maharashtra State Road Development Corporation (MSRDC).
To meet its property tax collection target of ₹6,200 crore for the financial year 2024-25, the BMC has intensified its recovery efforts. Between May 26, 2024, and February 12, 2025, the civic body collected Rs.4,823 crore in property taxes. To achieve the remaining target of Rs.1,377 crore by March 31, 2025, the BMC has taken stringent actions, including attaching properties of defaulters.
Legal Framework and Future Actions
Under Section 203 of the Mumbai Municipal Corporation Act, the BMC is empowered to attach and auction properties of tax defaulters. If the outstanding taxes are not paid within the stipulated 21-day period after notice issuance, the civic body can initiate the auction process to recover dues. This legal provision ensures that property owners comply with tax obligations, failing which they face stringent punitive measures.
In a significant move, the BMC is set to auction 228 properties whose owners have defaulted on property taxes totaling over Rs.581 crore. This marks the first such auction in 15 years, signaling the civic body’s commitment to enforcing tax compliance. Defaulters have been given a final opportunity to clear their dues before the auction process commences.
Implications for Property Owners
The BMC’s aggressive stance serves as a stern warning to property owners about the consequences of defaulting on property tax payments. Property owners are urged to ensure timely payment of taxes to avoid punitive actions such as property attachment and auction. The civic body’s actions underscore the importance of adhering to municipal regulations and fulfilling civic responsibilities.
As the financial year draws to a close, the BMC is expected to continue its stringent measures against defaulters to meet its revenue targets. Property owners with outstanding dues should take immediate steps to clear their liabilities to prevent legal and financial repercussions.
