Mumbai: The BMC will be sending a legal notice to 72 property tax defaulters whose cheques, issued in the financial year 2022-2023 had bounced.
The civic body has to recover Rs10.79 crore from the defaulters. Dishonour of a cheque is a criminal offence and is punishable by both imprisonment and fine.
Defaulters had issued 892 cheques
Property tax is the second highest revenue source that contributes 24% of income to the BMC’s kitty. The civic authorities issue property tax bills for a particular financial year in May. Defaulters had issued 892 cheques, collectively made out for an amount of Rs43.54 crore. However, all were dishonoured because of insufficient funds in the bank accounts. Most of the defaulters were builders and owners of commercial premises, societies and a few individuals, said civic sources.
As per data from the assessor and collection department, around 3,945 properties have been attached worth over Rs2,237 crore since 2010. After facing a severe cash crunch during the pandemic, the civic authorities started cracking down on property tax defaulters. However, despite not having sufficient balance, the defaulters issue cheques to avoid the BMC action like disconnection of water supply or attachment of properties for non-payment.
As per data till March 31, all the cheques deposited in the bank in last financial year, around 892 cheques bounced for various reasons. The BMC recovered Rs32.75 crores from 820 defaulters in the last few months. However, a warning issued to 72 defaulters went unheeded.
“We find such defaulters every year who do not maintain sufficient bank balance. The BMC’s legal department’s assistant legal officer will look into the matter. A legal notice under section 138- Negotiable Instruments Act 1881 will be sent to these defaulters,” said a senior civic official.
Pointers
Property tax earned last fiscal: Rs5,368 crore
Expected tax in 2023-24: Rs6,000 crore
Attached properties: 3,945 (since 2010)
Value: Rs2,237 crore
