BMC Warns Property Tax Defaulters: Final Notice Issued, Auctions Loom
The Brihanmumbai Municipal Corporation (BMC) has issued a final notice to property tax defaulters in four wards, warning of imminent auctions if dues are not settled within seven days.
Property TaxBmcAuctionsDefaultersMumbaiReal Estate MumbaiOct 02, 2025
The BMC's joint municipal commissioner of the assessment and collection department, Vishwas Shankarwar, stated that the process involves a 21-day notice followed by a seven-day notice. If the defaulters fail to pay within the specified period, the auction will proceed on an as-is-where-is basis, and the winning bidder will become the new owner. The eviction will be carried out with police assistance.
Following the second notice, the auctioneer will publish details in newspapers before the proceedings begin. The BMC has partnered with M Junction, a private firm specializing in online auctions, to conduct the process. “This is happening after 30–40 years. The last such instance dates back to 1984, when a flat was auctioned,” Shankarwar added.
Among the major defaulters is Shanti Sadan CHS in Chunabhatti (L ward), spread across 2,570 sq m, with dues of ₹3.28 crore, including taxes and penalties. In M West ward, the Housing Bombay Commissioner’s property in Chembur (Building No 1, Subhash Nagar), covering 3,073 sq. m, owes ₹2.70 crore. A property in C ward, with residential units and shops on 1,648 sq. m, has dues of ₹2.24 crore. In Borivali’s R Central ward, Rajani House, measuring 624 sq m, has unpaid taxes and penalties totaling ₹31.81 lakh.
The recovery process begins with penalties imposed after the due date, followed by a demand notice of 21 days. If dues remain unpaid, a second notice gives seven more days. The next step is property attachment. In cases where defaulters pay at least 50% and issue a post-dated cheque for the rest, action is kept in abeyance.
If payments still do not materialize, the BMC proceeds with seizure, followed by auction after ensuring legal clearances. Notices are served both in person and affixed to properties, with adequate time for response.
The civic body has urged defaulters to settle dues within the seven-day window to avoid losing ownership. So far, the BMC has collected ₹3,094 crore in property taxes—41% of its annual target of ₹7,400 crore, to be achieved by March 31, 2026.
Frequently Asked Questions
What is the final notice issued by the BMC to property tax defaulters?
The BMC has issued a final notice to property tax defaulters in four wards, warning them that their properties will be auctioned if unpaid dues are not cleared within seven days.
How much money does the BMC aim to recover from the identified properties?
The BMC aims to recover ₹8.53 crore from the identified properties.
What is the process followed by the BMC for property tax recovery?
The process involves a 21-day notice followed by a seven-day notice. If the defaulters fail to pay within the specified period, the property is auctioned on an as-is-where-is basis.
Who is the joint municipal commissioner of BMC’s assessment and collection department?
Vishwas Shankarwar is the joint municipal commissioner of BMC’s assessment and collection department.
How much has the BMC collected in property taxes so far?
So far, the BMC has collected ₹3,094 crore in property taxes, which is 41% of its annual target of ₹7,400 crore.
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