BMC Takes Strict Action Against Mumbai's Major Property Tax Defaulters
The Brihanmumbai Municipal Corporation (BMC) has escalated its efforts to recover outstanding property taxes by issuing formal property attachment notices to some of Mumbai's most significant defaulters. The civic body has explicitly warned that failure to clear dues promptly will result in the seizure and auction of assets, marking a decisive step in its revenue recovery campaign.
Top Defaulters Facing Legal Action
Among the prominent entities listed by the BMC is Raghuvanshi Mills Limited, located in the G South ward, which has accumulated arrears exceeding a staggering Rs 140 crore. Other major defaulters identified include Rajhans Associates, Ashapadara Developers, Sumer Buildcorp Pvt. Ltd., DBS Realty, SD Corporation, and Galaxy Corporation. Each of these organizations owes tens of crores of rupees in unpaid property taxes, according to official records from the civic administration.
Legal Framework and Official Directives
The attachment notices have been served under Section 203 of the Mumbai Municipal Corporation Act, targeting large defaulters who have consistently failed to meet their tax obligations within the stipulated period, despite possessing the financial capacity to do so. This legal move follows a series of repeated reminders and formal warnings issued by the BMC over an extended duration.
Additional Municipal Commissioner (City) Ashwini Joshi has directed officials to initiate comprehensive legal proceedings against defaulters who continue to evade tax payments. The notices clearly state that if outstanding dues are not settled within the prescribed timeframe, movable assets within the properties will be seized and auctioned under Sections 204, 205, and 206 of the Act. Should this initial measure prove insufficient for recovery, the properties themselves will be subject to auction.
Importance of Property Tax Revenue
Property tax constitutes a major source of revenue for the BMC, which relies heavily on these funds to operate and maintain essential civic services across Mumbai. Property owners are legally required to pay their tax within 90 days of receiving their bills. Officials from the assessment and collection department have outlined a phased recovery process, which includes:
- Personal follow-ups and direct communication with defaulters
- Issuance of formal demand letters
- A final 21-day notice before implementing coercive actions
Intensified Recovery Efforts and Public Appeal
Despite these systematic measures, several high-value defaulters have remained unresponsive, prompting the BMC to proceed with attachment notices. These notices encompass not only the outstanding tax amounts but also applicable penalties. The civic body is intensifying its efforts to meet property tax collection targets across Mumbai and its suburbs, emphasizing the critical need for revenue to sustain municipal operations.
Civic officials have also encouraged citizens to utilize the online payment facilities available on the BMC website to avoid any inconvenience and ensure timely compliance. The administration has made a final appeal to defaulting property owners, urging them to clear their dues at the earliest to prevent the initiation of attachment and auction proceedings, which could lead to significant financial and asset losses.
