Mumbai: BMC Reports ₹6,228 Crore Property Tax Evasion Over 2 Decades, Cracks Down On Major Defaulters

Mumbai: The recent data from the BMC has highlighted a concerning trend of property tax evasion over the past two decades, with the total amount reaching Rs 6,228 crores. Notably, 500 major defaulters, including developers and corporate entities, are responsible for a significant share of this amount, totaling Rs 3,981 crores.

In a bid to crack down on these large defaulters, the civic body has claimed to have attached 3,095 properties, out of which 25 have already entered the auction process.

Following the abolition of the Octroi naka, property tax has emerged as a vital revenue source for the BMC. However, in recent years, both disputed and outstanding property tax dues have escalated dramatically. Given that property tax revenue is crucial for financing infrastructure projects and civic development across Mumbai, the BMC has intensified its efforts to tackle this growing issue.

In a decisive move against major defaulters, the BMC has launched a comprehensive crackdown to recover these unpaid dues. Despite the BMC's relentless efforts, the outstanding property tax amount has now reached a level equivalent to the annual target for property tax in the current financial year.

A significant challenge in recovering these dues has been the ongoing litigation surrounding several properties. "These legal disputes have acted as a major hurdle, preventing the civic body from fully collecting the outstanding property tax and hindering the smooth execution of recovery processes," said a senior civic official.

The BMC has issued notices for property attachment under Section 203 of the BMC Act, 1888. If the taxes are not settled within the stipulated period, the action is taken under sections 203, 204, 205, and 206. This may involve seizing movable goods from the property and conducting an auction to recover the dues.

The BMC has set an ambitious target of collecting Rs 6,200 crores in property tax for the financial year 2024-25. As of January 17, 2025, the assessment and collection department has successfully recovered Rs. 4,376 crores. With 2,40,000 properties registered for property tax, the BMC has also appointed a specialized consultant to verify the ownership and valuation of undisputed seized properties.