Mumbai, Dec 20: The BMC has postponed the auction of properties belonging to major tax defaulters ahead of the 2026 civic elections. Seven defaulters, collectively owing over Rs 63 crore in unpaid property tax, were served final notices last week but failed to clear their dues.
With more than 40% of civic staff—part of the nearly 75,000 personnel required for the elections—deployed for polling duties, the civic body has put the recovery drive on hold.
Second auction list includes high-value commercial properties
The second auction list included commercial and individual holdings such as oil mills, godowns, hotels and land parcels, with principal dues of Rs 30 crore that rise to Rs 63 crore with penalties and interest.
Recovery action under MMC Act provisions
The enforcement is being carried out under Section 200(2) of the MMC Act, 1888, which allows compulsory sale of properties to recover unpaid taxes.
Civic staff diverted for election duties
A senior civic official noted, “Our Assessor and Collection Department staff have been engaged in election work for over a month. Until polling concludes, the auctions cannot proceed, giving defaulters a temporary reprieve.”
Details of properties listed for auction
The seven properties that the BMC has put up for auction for pending property tax are an oil mill with godown and office at Mazgaon (Rs 1.41 crore), land at Parel (Rs 89 lakh), Ceejay House at Worli (Rs 1.68 crore), shops and office at Turner Road, Bandra West (Rs 18.88 crore), a commercial property at Malad East (Rs 3.23 crore), Hotel Imperial Palace in Goregaon East (Rs 34.55 crore) and residential land in Dahisar East (Rs 2.41 crore).
Property tax remains BMC’s main revenue source
Property tax remains the BMC’s primary source of revenue. Over the past two years, the civic body has stepped up its crackdown on major defaulters, enabling a record collection of Rs 6,388 crore in 2024–25—surpassing the target of Rs 6,200 crore and marking the highest haul since 2010.
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Outstanding dues continue to mount
Yet, cumulative outstanding dues dating back to 2010 have swelled to Rs 22,000 crore, including 15 years of penalties.
Collection target for current financial year
For the current financial year, the BMC has set a tax collection target of around Rs 7,700 crore, achieving nearly Rs 4,000 crore—or 51% of the target—in the first nine months.
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