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Mumbai: Auction of property tax defaulters’ land approved

Updated on: 09 February,2021 08:42 AM IST  |  Mumbai
A Correspondent |

With over Rs 19,000 cr to recover from violators, BMC will sell even disputed properties of those who haven’t paid 50 per cent of dues

Mumbai: Auction of property tax defaulters’ land approved

In case of government properties like MHADA and MMRDA, only ownership of the building will be auctioned and possession of the land will remain with the authority. Representation pic/Atul Kamble

The standing committee on Monday, granted permission for the auction of land and structures of  property tax defaulters. Until now, though the corporation locked such premises, it couldn't auction them to recover the tax. The auction will be implemented after the state nod.


In an attempt to recover property tax dues of over Rs 19,000 crore, the civic body is taking various steps including auction of immovable properties. Even disputed properties of defaulters who haven’t paid 50 per cent of their dues will be auctioned.


In the auction, the minimum reserve bid will not be less than the outstanding property tax with penalty. In case of government properties like MHADA and MMRDA, only ownership of the building will be auctioned and the possession of the land will remain with the authority.  


The attaching of movable properties like furniture, vehicles, electronic appliances had started last year. “The BMC is planning to auction movable property in February and is preparing to auction land or structures of citizens who have failed to deposit even 50 per cent of the property tax,” said a BMC officer. Attaching and locking properties of defaulters has hardly helped recover dues, as generally, the defaulters’ businesses are already shut. 

“After issuing a notice giving 90 days to pay the dues, the water connection is cut. If the defaulter fails to pay the dues even then, the BMC attaches the property and as per the standing committee approval, can auction it 21 days later,” said Sangita Hasnale, assistant commissioner of Tax Assessment and Collection Department. Attachment committees have been formed at the ward level, deputy municipal commissioner level and joint municipal commissioner level to take decisions.

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