Govt Bodies Owe ₹3,368 Crores In Property Tax To BMC; MMRDA, MHADA, Police Commissioner Among Top Defaulters

Mumbai: The government authorities owe a massive amount of more than Rs 3,368 crores in property tax to the BMC. The assessment and collection (A&C) department of the BMC has prepared an updated list of government authorities with the highest outstanding amounts, which includes the MMRDA, MHADA, the Police Commissioner, Central and State government offices, Central and Western railway offices and BPT. As of January 31, 2026, the total outstanding, including the penalty, comes to Rs 33,68,38,67,155.

MMRDA Tops Defaulters List

As per the list, which is accessed by the Free Press Journal, the MMRDA is the top defaulter with property tax outstanding of Rs 16,85,55,58,721; followed by the MHADA with Rs 6,01,61,91,101. The Central government defaults on the total property tax of Rs 4,64,90,35,450 and the State government with Rs 4,36,2376,068. The Police Commissioner follows the list with the total outstanding of Rs 1,21,78,62,717 and the BPT with Rs 45,27,88,246. While the Western and Central Railways owe Rs 6,89,40,197 and Rs 6,11,14,654, respectively.

Property Tax Key Revenue

Since the abolition of the Octroi, the property tax is the largest source of revenue for the BMC, the richest municipal corporation of the country. “The civic authority urges the state and central government authorities to ‘come out of their lethargy’ and clear the property tax. We do not think they have any lack of funds to pay their taxes to the local government,” a senior BMC officer said.

No Coercive Action Allowed

The officer added that the rules prevent them from taking coercive action like the disconnection of water and electricity supply to the government offices, as they can do with the private structures.

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Seizure Notices To Defaulters

Earlier this month, the BMC’s A&C department issued seizure notices to 48 major defaulters, with property tax dues totalling Rs. 1,500 crores. On February 14, a list of the top 20 defaulters, including real estate developers and mills, was released, which have failed to clear massive property tax dues of up to Rs 276 crores. Some of the top defaulters include: Rajhans Associates with Rs 46,05,27,065; Vimal Associates with Rs. 39,09,85,085; National Industrial Corporation with Rs 10,36,81,048; Yashwant Jadhav S.S.V.H Realtors with Rs 9,94,70,145; Ambika Silk Mill with Rs 9,64,90,982; Shinde Pratishthan with Rs 8,79,29,948; The Victoria Mills Ltd., Plaza Panchsheel Mill with Rs 8,76,68,006; A.H. Wadia Trust Skylink Developers with Rs 7,56,78,272; Mehrunnisa Mohammad Saheb Khatib with Rs 7,33,80,711; The New Sun Mill Co. Ltd., Shubham Fabric with Rs 7,19,30,047; Jai Mata Di Construction with Rs 5,79,35,563; Transcon Triumph Phase 2 Pvt. Ltd. With Rs 5,78,10,552; Elco Arcade Cooperative Housing Society D Wing with Rs 4,81,12,046 and Golden Royal Talkies with Rs 4,22,67,415 among many others.

Action Under Municipal Act

“Seizure notices were served to the major defaulters under Section 203 of the Municipal Corporation Act. If the property tax is not paid within the given period, as per the provisions of the Act, the movable assets on the property will first be seized and auctioned under Sections 204, 205, and 206. If the tax still remains unpaid, the property itself will be auctioned under Section 206, as clearly stated in the notice," the BMC official said.

Ambitious Collection Target Set

For the financial year 2025–26, the BMC has set an ambitious property tax collection target of Rs. 6,200 crore, of which Rs. 5,426.81 crore has already been recovered between April 1, 2025, and February 4, 2026. To curb defaults, the civic body has launched an extensive collection drive, which will continue until March 31, 2026.

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