BMC Takes Strict Action Against Property Tax Defaulters in Mumbai

Published: February 14, 2026 | Category: Real Estate Mumbai
BMC Takes Strict Action Against Property Tax Defaulters in Mumbai

The Brihanmumbai Municipal Corporation (BMC) has intensified its efforts to recover unpaid property taxes by issuing seizure notices to major defaulters. In a significant move, the BMC has targeted 48 entities with property tax dues totaling Rs. 1,500 crores. On Saturday, the civic body released a list of the top 20 defaulters, which includes real estate developers and mills, with outstanding tax dues ranging from Rs. 63 crores to Rs. 4.22 crores.

According to the list released by the BMC's Assessment & Collection (A&C) department, the top 20 defaulters include the Maharashtra Housing and Area Development Authority (H West) with a debt of Rs. 63,21,40,591, Rajhans Associates (S ward) owing Rs. 46,05,27,065, and Vimal Associates (K East) with a debt of Rs. 39,09,85,085. Other notable defaulters include the National Industrial Corporation (S ward), Yashwant Jadhav S.S.V.H Realtors (N ward), and the Ambika Silk Mill (G South).

The BMC has issued seizure notices under Section 203 of the Mumbai Municipal Corporation Act, warning defaulters that if the property tax is not paid within the specified period, their movable assets will be seized and auctioned under Sections 204, 205, and 206. If the tax remains unpaid, the property itself will be auctioned under Section 206. A senior civic official stated, “These measures are necessary to ensure that the civic body can continue to provide essential services to the residents of Mumbai.”

For the financial year 2025–26, the BMC has set an ambitious property tax collection target of Rs. 6,200 crore. As of February 4, 2026, the civic body has already recovered Rs. 5,426.81 crore, which is a significant achievement. To further curb defaults, the BMC has launched an extensive collection drive that will continue until March 31, 2026. This drive aims to ensure that all property owners in Mumbai fulfill their tax obligations and contribute to the city's development and maintenance.

The BMC's aggressive approach to property tax collection is a crucial step in maintaining the financial health of the city. Property taxes are a significant source of revenue for the civic body, which uses these funds to fund infrastructure projects, improve public services, and enhance the quality of life for Mumbai's residents. The civic body's efforts to recover unpaid taxes will not only help in achieving the financial targets but also send a strong message to defaulters that non-payment of taxes will not be tolerated.

Residents and property owners are advised to check their property tax dues and make the necessary payments to avoid any legal actions. The BMC has also provided several convenient payment methods, including online payment options, to make the process easier for taxpayers. This proactive approach by the civic body is expected to have a positive impact on the city's financial stability and overall development.

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Frequently Asked Questions

1. What action has the BMC taken against property tax defaulters?
The BMC has issued seizure notices to major property tax defaulters, warning them that if the tax is not paid within the specified period, their movable assets will be seized and auctioned. If the tax remains unpaid, the property itself will be auctioned.
2. Who are the top 20 property tax defaulters in Mumbai?
The top 20 property tax defaulters include entities like the Maharashtra Housing and Area Development Authority (H West), Rajhans Associates (S ward), Vimal Associates (K East), and the National Industrial Corporation (S ward).
3. What is the BMC's property tax collection target for the financial year 2025–26?
The BMC has set an ambitious property tax collection target of Rs. 6,200 crore for the financial year 2025–26.
4. How much property tax has the BMC recovered so far?
As of February 4, 2026, the BMC has already recovered Rs. 5,426.81 crore in property taxes.
5. What is the purpose of the extensive collection drive by the BMC?
The purpose of the extensive collection drive is to ensure that all property owners in Mumbai fulfill their tax obligations and contribute to the city's development and maintenance. The drive will continue until March 31, 2026.