BMC Takes Strong Action Against Property Tax Defaulters in Mumbai

Published: February 10, 2026 | Category: Real Estate Mumbai
BMC Takes Strong Action Against Property Tax Defaulters in Mumbai

The Brihanmumbai Municipal Corporation (BMC) has launched a strict drive against property tax defaulters in Mumbai, issuing seizure notices to several property owners. This action follows repeated warnings that failed to prompt payment from major defaulters.

According to an official statement, the Mumbai civic body has targeted owners of plots, residential-cum-commercial buildings, commercial premises, and industrial units. The action is aimed at protecting honest taxpayers, speeding up tax collection, and ensuring steady revenue for civic services, infrastructure, and development projects across the city.

The BMC has issued seizure notices under Section 203 of the Mumbai Municipal Corporation Act to those who have deliberately avoided paying property tax despite having sufficient financial capacity. These notices warn that if dues are not cleared within the stipulated time, the property will be seized and, if necessary, auctioned, officials said.

Despite multiple appeals and follow-up notices, many property owners continued to delay payment. Therefore, the BMC has begun strong enforcement measures, including the seizure and attachment of properties. This includes plots, residential-cum-commercial buildings, commercial premises, and industrial units.

The action is being carried out under the directions of Municipal Commissioner Bhushan Gagrani, Additional Municipal Commissioner (City) Dr. Ashwini Joshi, and guidance from Joint Commissioner (Tax Assessment & Collection) Vishwas Shankarwar. Authorities have repeatedly urged defaulters to pay dues within the deadline to avoid penalties and legal action. However, the administration has now initiated stringent action against those who still fail to comply.

The BMC’s Tax Assessment and Collection Department collected Rs 5,426.81 crore in property tax from 1 April 2025 to 4 February 2026. The civic body has launched an extensive two-month campaign to further improve collections and ensure compliance.

Defaulters are being issued notices under Sections 203, 204, 205, and 206 of the Mumbai Municipal Corporation Act. If taxes remain unpaid after the deadline, the BMC will seize movable and immovable property and proceed to auction it. The BMC has also stated that if dues are not recovered from the property, the civic body may auction the property as per the interim order of the High Court in Petition No. 2592/2013.

The BMC released a list of the top ten property owners targeted in the recovery drive on February 10, 2026. The outstanding amounts are as follows:

1. Messrs Kamla Mills (G South Ward) – Rs 12.01 crore 2. Messrs Sumer Corporation Chandivali Farms (L Ward) – Rs 11.98 crore 3. Messrs Transcon Sheth Creators (P North Ward) – Rs 11.98 crore 4. Messrs Formost Realtors Pvt Ltd (H East Ward) – Rs 11.91 crore 5. Messrs Shri Sai Group (K West Ward) – Rs 11.31 crore 6. Messrs Accord Builders (L Ward) – Rs 11.20 crore 7. Messrs Sumer Corporation Chandivali Farms (L Ward) – Rs 10.63 crore 8. Messrs Amir Parks & Amusement Pvt Ltd (P South Ward) – Rs 9.56 crore 9. Messrs Imtiaz Abdul Gaffar (K West Ward) – Rs 2.54 crore 10. Aminullah Zahidullah (H West Ward) – Rs 2.51 crore

This drive is expected to significantly improve the city's revenue collection and ensure that all property owners contribute their fair share to the development and maintenance of Mumbai's infrastructure and services.

Stay Updated with GeoSquare WhatsApp Channels

Get the latest real estate news, market insights, auctions, and project updates delivered directly to your WhatsApp. No spam, only high-value alerts.

GeoSquare Real Estate News WhatsApp Channel Preview

Never Miss a Real Estate News Update — Get Daily, High-Value Alerts on WhatsApp!

Frequently Asked Questions

1. Why is the BMC taking action against property tax defaulters?
The BMC is taking action to protect honest taxpayers, speed up tax collection, and ensure steady revenue for civic services, infrastructure, and development projects in Mumbai.
2. What are the consequences for property tax defaulters?
Property tax defaulters will receive seizure notices. If they fail to pay their dues within the stipulated time, their properties will be seized and may be auctioned.
3. Which sections of the Mumbai Municipal Corporation Act are being used for this action?
The BMC is using Sections 203, 204, 205, and 206 of the Mumbai Municipal Corporation Act to issue seizure notices and take action against defaulters.
4. What is the total amount of property tax collected by the BMC from 1 April 2025 to 4 February 2026?
The BMC collected Rs 5,426.81 crore in property tax from 1 April 2025 to 4 February 2026.
5. Who are some of the top property tax defaulters listed by the BMC?
The top property tax defaulters include Messrs Kamla Mills, Messrs Sumer Corporation Chandivali Farms, and Messrs Transcon Sheth Creators, among others, with outstanding amounts ranging from Rs 2.51 crore to Rs 12.01 crore.