Mumbai: CR2 mall issued notice to pay property tax arrears of Rs 19.06 crore

Mumbai: CR2 mall issued notice to pay property tax arrears of Rs 19.06 crore

Dipti SinghUpdated: Tuesday, March 02, 2021, 11:34 PM IST
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BrihanMumbai Municipal Corporation (BMC) has issued a notice to south Mumbai’s CR2 mall, located in the middle of the swanky Nariman Point business district, warning the management to pay the property tax arrears of Rs 19.06 crore. The BMC Property Tax Department has asked the management to clear the property tax by March 8 or the civic body will disconnect its water supply and electricity connection.

According to the official of the BMC Assessment and Tax Collection Department, the arrears are pending for two portions, one belongs to the CR2 mall and another one to MMRDA. "The total outstanding since 2010 comes to around Rs 19,06,36,458 crore. We have already intimated the management and even MMRDA several times. Notices have been issued from time to time. We have now placed a warning on the wall near the mall's entrance. They have to clear the outstanding amount by March 8 or we will disconnect the water and electricity connection. The next step will be to attach the property," said a senior official from the Assessment and Tax Collection Department.

The official added, "The portion of Inox is clear and has no outstanding. They have been clearing their annual property tax of Rs 45 lakhs every six months. They have cleared their property tax up to March 31, 2021."

As the financial year is about to end, the Assessment and Collection Department has listed the top 100 defaulters in every ward from whom it plans to recover the outstanding amount. Admitting that it will not meet the target earnings amount of Rs 6,768 crore from property tax for the fiscal 2020-21, the civic body had reduced the target to Rs 4,500, of which the civic body has till date manage to collect 2,200 crore, which is around 45 per cent of the total target.

After it introduced capital base property tax in 2015, BMC has been struggling to collect property tax. Many matters are under litigation and property holders have failed to deposit even 50 per cent of the tax. The corporation had been attaching such premises, but couldn’t auction them. The BMC committee recently granted the administration permissions for attaching property and auctioning them.

According to the officials from the Assessment and Collection Department, the defaulters, mostly commercial establishments, owe the civic body Rs 19,000 crore. BMC, this year, has attached 3,424 properties of various kinds, including open land and commercial and residential properties and these would be auctioned based on their capital value.

“We are trying to complete the process before March end. Auctions of the properties of defaulters will also be a lesson for others to clear the dues before the deadline," said Dr Sangeeta Hasnale, BMC assessor and collector. BMC has set a target of collecting Rs 7,000 crore in property tax in the financial year 2021-22.

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