Mumbai BMC Cracks Down on Top Property Tax Defaulters, Issues Seizure Notices
Mumbai, Feb 09: In a significant move to recover massive pending property tax dues, the Mumbai Municipal Corporation (BMC) has slapped seizure notices under Section 203 on the top 20 property tax defaulters, who collectively owe Rs 630 crore. The civic body has warned that missed deadlines will trigger action under the Mumbai Municipal Corporation (MMC) Act, beginning with the seizure and auction of movable assets and, if necessary, the properties themselves. The defaulters include several leading real estate developers.
The BMC has collected Rs 5,426.81 crore in property tax between April 1, 2025, and February 4, 2026—approximately 73% of its Rs 7,341-crore target for the 2025–26 financial year. With Rs 1,915 crore still to be recovered by March 31, the end of the financial year, the civic body is intensifying efforts to trace major defaulters and recover pending dues, as discussed in a recent meeting at the BMC headquarters.
The legal process for recovering property taxes is well-defined. Property tax must be paid within 90 days of assessment. Officials from the Assessment and Collection Department follow up with owners, and if the tax remains unpaid, a demand notice and a 21-day final notice are issued. Under MMC Act Sections 204–206, movable assets are first seized and auctioned; if recovery fails, the property itself may be auctioned, according to a civic official.
The top property tax defaulters named in a press release issued by the BMC include Raghuvanshi Mills Ltd (Rs 140.61 crore), M/s Rajhans Associates (Rs 47.03 crore), M/s Ashapura Developers (Rs 44.88 crore), Sumer Buildcorp Pvt Ltd (Rs 39.30 crore), Sameer Bhojwani (K West ward) (Rs 31.73 crore), DBS Realty with multiple dues ranging from Rs 29.12 crore to Rs 18.67 crore, Aamir Parks & Amusement Pvt Ltd (P South) (Rs 27.80 crore), S.D. Corporation (R South) (Rs 21.43 crore), A.R. Jafar (D ward) (Rs 21.03 crore), and Galaxy Corporation 10 Planet (H West) (Rs 20.23 crore).
Property tax remains the BMC’s primary source of revenue. However, cumulative outstanding dues dating back to 2010 have swelled to Rs 22,000 crore, including 15 years of penalties. This mounting arrears has prompted the BMC to take stringent measures to ensure timely payment and recovery of dues.
