No More Leniency: BMC Takes Tough Action Against Major Property Tax Defaulters

Published: February 10, 2026 | Category: Real Estate Mumbai
No More Leniency: BMC Takes Tough Action Against Major Property Tax Defaulters

The Brihanmumbai Municipal Corporation (BMC) has issued property seizure notices to several major property tax defaulters across Mumbai, warning of strict legal action if dues are not cleared immediately.

The move targets property owners who have repeatedly failed to pay taxes despite having the financial capacity to do so. The notices have been issued under Section 203 of the Mumbai Municipal Corporation Act. Civic officials said that if the outstanding tax amounts are not paid within the stipulated time, the BMC will initiate further action under Sections 204, 205, and 206. This includes the seizure of movable assets from the property, followed by auction proceedings.

If the dues are still not recovered, the properties themselves will be auctioned as per legal provisions. Property tax remains one of the BMC’s primary sources of revenue. Civic rules mandate that property tax must be paid within 90 days of receiving the bill.

Failure to do so triggers a step-by-step recovery process. Initially, officials from the assessment and collection department personally follow up with defaulters through visits and communication. If there is no response, a demand letter is issued, followed by a final 21-day notice before seizure action begins.

Senior civic officials have confirmed that enforcement will now be stricter. Under the leadership of Municipal Commissioner and Administrator Bhushan Gagrani and Additional Municipal Commissioner (City) Ashwini Joshi, the civic body has intensified efforts to meet its revenue targets across the city and suburbs.

Officials said that several awareness drives have been carried out to encourage timely tax payments. Online payment facilities are also available to reduce inconvenience for citizens. Details related to property tax payments can be accessed through the BMC’s official website. Despite repeated reminders and adequate time being given, some large defaulters have continued to ignore payment notices. As a result, seizure notices have now been served to top defaulters, with outstanding amounts running into hundreds of crores, including penalties.

Civic officials have appealed to property owners who have received notices to clear their dues immediately to avoid further action. The BMC has reiterated that auction proceedings will be carried out strictly as per law if payments are not made within the given timeframe. The latest action sends a clear message that the civic body is no longer willing to tolerate prolonged non-payment of property taxes, especially by high-value defaulters.

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Frequently Asked Questions

1. What action has the BMC taken against property tax defaulters?
The BMC has issued property seizure notices to major property tax defaulters, warning of strict legal action and auctions if dues are not cleared immediately.
2. Under which sections of the law are these notices issued?
The notices are issued under Section 203 of the Mumbai Municipal Corporation Act. If dues are not paid, further action will be taken under Sections 204, 205, and 206.
3. What is the process if the outstanding tax amounts are not paid?
If the outstanding tax amounts are not paid, the BMC will seize movable assets from the property and proceed with auction proceedings.
4. How long do property owners have to pay their taxes after receiving the bill?
Property tax must be paid within 90 days of receiving the bill, as mandated by civic rules.
5. What steps does the BMC take to encourage timely tax payments?
The BMC conducts awareness drives and provides online payment facilities to encourage timely tax payments. Property owners can access details related to tax payments on the BMC’s official website.