Mumbai BMC Issues 21-Day Notice to Recover ₹27 Crore in Property Tax Dues

The BMC has issued a 21-day notice to five property owners to clear outstanding property tax dues amounting to Rs 27 crore, warning that failure to comply will result in the auction of the properties.

MumbaiProperty TaxBmcAuctionDefaultersReal Estate MumbaiSep 10, 2025

Mumbai BMC Issues 21-Day Notice to Recover ₹27 Crore in Property Tax Dues
Real Estate Mumbai:The Brihanmumbai Municipal Corporation (BMC) has taken a strict stance against property tax defaulters by issuing a 21-day notice to five property owners. These owners are required to clear outstanding property tax dues totaling Rs 27 crore. The civic body has warned that failure to comply will result in the auction of the properties.

The assets in question include a hotel property in Parel, land in Chunabhatti, and three other parcels located on Abdul Rahman Road, in Borivali, and in Chembur. This action is part of a broader crackdown by the BMC to recover unpaid property taxes that have remained pending for decades.

The cumulative outstanding dues pending since 2010 have now ballooned to Rs 22,000 crore, including penalties accrued over the past 15 years. The BMC's Assessment and Collection (A&C) Department has identified several major defaulters, including prominent real estate developers, government corporations, and even civic offices. As part of an intensified recovery drive, the civic body has begun issuing notices to high-value defaulters.

After verifying documents, property cards, and checking for any pending litigations, we have so far prepared a list of 18 properties, said a senior civic official. Of these, notices have already been issued to the first five, and the auction process has been initiated in case the dues are not cleared within 21 days. The remaining 13 properties are currently in the pipeline for auction, pending final clearance from the legal department.

The list of defaulters is updated every two months, with the total outstanding amount continuing to rise — largely due to some major defaulters dragging the matter into court. While a few firms settle their dues after receiving attachment notices, those who fail to comply face stricter action.

If the dues remain unpaid, the BMC can proceed with measures such as seizure and auction, the official added. The auctions will specifically target profitable, immovable assets of defaulters that are free of any legal disputes. Notably, the last such auction was conducted in 2012.

Here is the list of properties and their outstanding dues:
- Executive Engineer, Government Housing Board – hotel - Rs 19.36 crore
- Shanti Sadan – Rs 3.28 crore
- Housing Commissioner, Mumbai (land)– Rs 2.70 crore
- Minochar Manekshaw Gandhi (house with shops)– Rs 2.24 crore
- Rajni House – Rs 0.31 crore

Total Outstanding Amount: Rs 27.91 crore

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Frequently Asked Questions

What is the total amount of property tax dues the BMC is trying to recover?

The BMC is trying to recover outstanding property tax dues totaling Rs 22,000 crore, including penalties accrued over the past 15 years.

How many properties are currently listed for auction by the BMC?

The BMC has prepared a list of 18 properties, with notices already issued to the first five. The remaining 13 properties are in the pipeline for auction, pending final clearance from the legal department.

What happens if property owners fail to clear their dues within 21 days?

If property owners fail to clear their dues within 21 days, the BMC can proceed with measures such as seizure and auction of their properties.

Who are some of the major defaulters identified by the BMC?

The major defaulters identified by the BMC include prominent real estate developers, government corporations, and even civic offices.

When was the last property auction conducted by the BMC?

The last property auction conducted by the BMC was in 2012.

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