Mumbai: In her budget speech at the civic headquarters in the early hours of Friday, Municipal Commissioner Ashwini Bhide said the civic body is actively working to recover pending property tax dues amounting to crores from Maharashtra Housing and Area Development Authority (MHADA) and Mumbai Metropolitan Region Development Authority (MMRDA). She added that the administration is also in discussions with the state government on a proposal to reduce the late payment penalty on property tax to 1% per month.
On Friday, Bhide completed one month since taking charge as Commissioner of the country’s richest municipal corporation. Prior to her appointment at the BMC, she served in the Chief Minister’s Office (CMO). She also continues to head the Mumbai Metro Rail Corporation (MMRC), overseeing the ongoing expansion of the metro network. During the recent budget discussions, several corporators urged Bhide to expedite the recovery of long-pending property tax dues from various agencies, which have remained unpaid for years. Responding to the concerns, Bhide assured that all necessary efforts would be made to expedite the recovery of the outstanding amount.
Pending dues
As of January 31, BMC records show MMRDA owes Rs. 1,685.6 crore across 128 properties, including Rs. 946.2 crore in unpaid taxes and Rs. 739.4 crore in penalties. Mhada has arrears of Rs. 601.6 crore for 3,636 properties, with Rs. 222.5 crore as penalties. Officials said MMRDA’s dues mainly stem from casting yards and Metro stations, while Mhada’s are linked to its properties, including BDD chawls.
Reduction in Property Tax Penalty
The BMC currently levies a 2% monthly penalty on property tax defaulters for delayed payments, effectively amounting to 24% annually. However, officials note that the steep rate has triggered persistent complaints from taxpayers and contributed to a growing backlog of outstanding dues. Addressing the issue, Bhide said, “We are in correspondence with the state government to amend the provisions and reduce the property tax penalty.”
Record break recovery
The Assessment and Collection Department exceeded its revised target of Rs. 7,341 crore, achieving total collections of Rs. 7,610.90 crore—over 103.68% of the set goal. Property tax remains one of the most important sources of revenue for the civic body.
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