Feeling pinch, BMC goes after top tax defaulters

To shore up its property tax collection, which is way behind the target for this financial year, the BMC has identified 200 top defaulters that owe the civic corporation about Rs 2,300 crore. While the top ten defaulters are to pay Rs 600 crore, officials said the list includes those who have not paid the dues despite having no disputes. The BMC has kept a target of Rs 5,400 crore till March 31.

In Mumbai, BMC can't collect thousands of crores of property tax due to disputes

The BMC will start issuing notices and seizing movable assets to collect the pending taxes, said officials. As per BMC records, property taxes of Rs 19,600 crore are mired in disputes, throttling an important source of revenue. The civic body had to revise its annual target to Rs 5,400 crore from Rs 7,000 crore after the state government rejected its plan to hike property taxes, and waived the levy on small houses.

In this financial year, the BMC has collected Rs 3,800 crore till January, while officials said they can get an additional Rs 3,756 crore of pending dues as there are no disputes over them. As per the list prepared by the BMC, the "chief transport and communication" wing of MMRDA is the top defaulter without dispute - Rs 110 crore.

"We made a list of 200 defaulters across the city who collectively have Rs 2,295 crore of pending tax. We have sent the list to all wards and asked them to start legal action by sending notices, cutting power and water connection, and ultimately attaching their assets," said Vishwas Mote, assistant commissioner of tax assessment and collection department.

Officials said that the water connection is cut 90 days after issuing a notice. If the defaulter fails to pay the dues even then, the BMC attaches the property and can auction it 21 days later. The attachment of assets like furniture, vehicles, and electronic appliances had started in 2020. Last year, the BMC's standing committee also permitted auction of land and the structure of the property tax defaulters.

"On the one hand, the BMC is planning to auction movable property and on the other, we are preparing to auction even disputed properties of defaulters who haven't paid 50 per cent of their dues," said a BMC official.

Rs 600 cr
Property tax to be paid by top ten defaulters in the list