Mumbai: BMC Initiates Action Against Major Property Tax Defaulters; Rs 548.69 Crore Dues Pending from 34 Properties
Mumbai, 7th March 2026: The Brihanmumbai Municipal Corporation (BMC) has intensified its property tax recovery drive, launching seizure and e-auction proceedings against 34 properties across the city that together owe more than Rs 548.69 crore in outstanding taxes and penalties.
The action is being carried out by the civic body’s Assessment and Collection Department, which has issued long-term notices to the property owners as part of the e-auction process. Officials said the properties include commercial buildings, hotels, vacant plots and mixed-use establishments located in various administrative wards of Mumbai.
Authorities stated that the deadline specified in the notices has already expired for 11 of these properties, prompting the civic body to initiate the auction process and invite bids from prospective buyers.
Following the initiation of the proceedings, five property owners deposited a combined amount of ₹10.45 crore with the civic administration as partial payment of their outstanding dues.
Municipal officials stated that the administration has consistently urged property owners to clear outstanding tax liabilities within the prescribed timeframe. However, in several cases in which notices were repeatedly ignored despite the financial capacity to pay, stricter enforcement measures have been implemented.
These measures include the attachment and seizure of properties followed by e-auction, aimed at ensuring compliance with tax recovery regulations.
Legal Action Under Municipal Act:
The recovery action is being taken under the provisions of the Mumbai Municipal Corporation Act. Under Section 203 of the Act, seizure notices have been issued to large defaulters who failed to pay their dues within the stipulated period.
Officials stated that if property owners fail to settle their liabilities even after the notice period, the properties may be seized and auctioned to recover outstanding tax amounts.
The civic body also noted that, pursuant to the Bombay High Court’s directions, auctioning properties is permissible when dues cannot be recovered through other available methods.
The list of defaulters includes properties owned by private companies, business entities and individuals, with outstanding amounts ranging from several lakh rupees to more than Rs 188 crore in a single case.
The BMC has reiterated its appeal to property owners to clear their pending property tax dues promptly to avoid legal action, property attachment and eventual auction.
