Mumbai News: BMC Property Auctions Put On Hold Amid SC's Ruling To Fix Capital Value Of All Listed Properties

Mumbai News: BMC Property Auctions Put On Hold Amid SC's Ruling To Fix Capital Value Of All Listed Properties

Following the SC's direction, the BMC will have to rework the capital value of all properties in Mumbai and give refunds to those who have paid property tax for 2010 to 2012 as per the Capital Valuation System.

SHEFALI PARAB-PANDITUpdated: Tuesday, January 02, 2024, 07:57 PM IST
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Mumbai: The BMC is yet to get any response from the state government on their request to make amendments to the BMC Act to resolve the legal complexities involved in the retrospective tax assessment. So, even after starting the process of appointing an auctioneer last year, the BMC had to delay the auction of 67 attached properties.

The last auction was held in 2012.

BMC's attached properties pegged at ₹2,237 crore

The BMC has attached 3,945 properties worth over ₹2,237 crore since 2010. The assessor and collection department started the process of appointing the auctioneer last year. In the first phase, 67 attached properties were planned to be auctioned. The civic body started the process of appointing three professional agencies, one for the valuation of the properties and one for searching for other investments of the defaulters. The third agency will have to search for immovable properties registered in the names of the defaulters, collecting documentary evidence of ownership of those properties and the interests and directorships of the defaulters.

BMC to rework the capital values of all properties on SC's order

However, following the Supreme Court's direction, the BMC will have to rework the capital value of all properties in Mumbai and give refunds to those who have paid property tax for 2010 to 2012 as per the Capital Valuation System. "We cannot auction the attached properties as we have to first fix their capital values and would also have to calculate the actual outstanding amount of the defaulters. It is also difficult to refund thousands of crores of rupees. We have sent a request to the state's Urban Development department for amendment to the BMC act. We have also sent a second reminder in November 2023. But yet to get any reply. We are sending provisional bills for fiscal 2023-24, but the auction has to be put on hold till the issue is resolved," said a senior civic official.

Property tax, the second-highest source of income for the BMC, contributes 24% of revenue to their kitty.

Statistics:

Attached properties: 3,945

Value: ₹2,237 crores

Auctions were to be held in the first phase for 67 properties.

Value over ₹355.19 crores

Last auction held: 2012

Property tax earned in 2022–23: ₹5,368 crores.

Target for 2023-2024 : ₹6,000 crore.

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