NMMC Cuts Penalties for Illegal Constructions, Freezes Tax Hikes Amid Recovery Target

Navi Mumbai: The first post-election general body meeting of the Navi Mumbai Municipal Corporation (NMMC) on Thursday, chaired by Mayor Sujata Patil, revealed major differences between elected corporators and administrative officers over tax concessions for property owners, including owners of unauthorised and ‘need-based’ structures in gaothan areas.

NMMC Commissioner Kailas Shinde reported that while the civic body faces a steep tax recovery target of ₹1,000-1,200 crore, nearly half the property owners — 172,000 out of 358,000 — are chronic tax defaulters. A major chunk of defaulters are owners of unauthorised and ‘need-based’ constructions in villages and gaothan areas, Shinde said, and warned officers of strict action if tax recovery targets are not met. He also urged corporators to aid rather than hinder recovery efforts.

Yet, fulfilling two core election promises championed by forest minister and BJP strongman Ganesh Naik, the general body unanimously pushed through a resolution freezing property tax and water charge hikes for the 2026–27 financial year, and another slashing the punitive tax penalty on unauthorised constructions in goathans – also called ‘need-based’ structures as per government resolutions – from a staggering 200% to just 5%.

The political magnanimity stood in sharp contrast to the commissioner’s uncompromising stance, especially on ‘need-based’ constructions. “An unauthorised construction remains precisely that, regardless of circumstances,” Shinde reminded elected members. Such structures can be regularised only after clearance from the High Court, he said. “Until those exhaustive legal protocols are followed, all such structures will be treated strictly as unauthorised.”

The NMMC Commissioner further stressed that corporators were bound by the Maharashtra Municipal Corporation Act. “Should any elected representative be found encouraging or protecting illegal builders, they will not be spared from stringent legal action,” he said. He also urged corporators to assist tax recovery efforts, saying, “If the revenue increases, the corporators themselves will benefit from it through increased development funds for their wards.”

Push for broader waivers

Unfazed by administrative warnings, the house reignited the push for broader tax exemptions currently pending state approval. House leader Sagar Naik moved to send an official reminder to the state government regarding a resolution proposing complete tax exemption for residential properties up to 500 square feet and a 75% concession for houses measuring 501-700 square feet.