BMC Demands INR 2,287 Crore Property Tax Dues from MMRDA and MHADA

The Brihanmumbai Municipal Corporation (BMC) has demanded payment of more than INR 2,287 crore in pending property tax from the Mumbai Metropolitan Region Development Authority (MMRDA) and the Maharashtra Housing and Area Development Authority (MHADA). The civic body has urged both agencies to clear their dues at the earliest, as it looks to strengthen its revenue position before the close of the financial year.

Communication was sent to both authorities in the past week, with officials emphasizing the need for timely payment. The administration stressed that the recovery of such large dues is crucial to support ongoing civic services and infrastructure spending across Mumbai.

As per available data till the end of January, MMRDA accounts for the larger share of pending dues. The authority owes around INR 1,685.6 crore across 128 properties. This includes INR 946.2 crore as unpaid property tax and an additional INR 739.4 crore as penalties. These dues are largely linked to infrastructure-related properties such as metro stations, casting yards, and other project-linked land parcels.

MHADA's outstanding dues stand at about INR 601.6 crore from 3,636 properties. A significant portion of this amount also includes penalties. The pending tax is mainly related to its residential stock, including older housing developments and chawls spread across the city.

A senior civic official handling property tax matters stated that the administration has already reached out to both agencies and is working towards recovery. The official added that the BMC continues to follow up with various departments and public bodies to ensure that dues are cleared in a timely manner.

Property tax collection has shown steady improvement this year. The civic body has already collected over INR 6,331 crore, surpassing last year's total of around INR 6,200 crore even before the financial year has ended. This reflects stronger enforcement and better compliance compared to previous years.

Property tax has become the most important revenue source for BMC after the removal of octroi following the implementation of GST in 2017. Since then, the civic body has depended heavily on property tax to fund essential services such as road maintenance, waste management, and public infrastructure.

Large pending dues from government and semi-government bodies have been a long-standing issue. In the past, several public authorities have collectively owed thousands of crores to the civic body, with recovery often taking time due to administrative and financial constraints.

At the same time, BMC has been tightening its recovery process. In recent cases, it has taken stricter steps such as issuing notices, initiating attachment of properties, and planning auctions in cases of continued non-payment. This reflects a more firm approach towards defaulters, including public agencies.

Policy changes may also affect future collections. A number of smaller residential units in Mumbai are currently exempt from property tax, and there have been discussions around increasing this exemption limit further, which could impact the tax base going forward.